Credit Correcting: Doing It Yourself

Follow these steps to learn how many professional credit repair services remove negative items from credit reports!! A person’s credit-worthiness is shown by a credit rating, which is based upon present financial condition, experience, and past credit history. A credit report details the credit history of a person or business, and is used by a lender in evaluating a potential borrower. If you have negative items on your report there are some simple steps to get them taken off your report which will save you money when you go to buy your next house, car, or boat!

1) Requesting the Credit Report
The first step in correcting a credit report is to find out exactly which credit bureaus are used by lending institutions in the consumer’s area. The best way to do this is to ask a few lending institutions (banks, savings and loans), especially any at which the consumer has (or plans to have) accounts, which credit bureau they use. (Remember, there are literally hundreds of small credit bureaus nationwide.)
It is impossible to make any credit corrections unless it is known exactly what is contained in the credit report. Therefore, a consumer wishing to mend their credit history should request a copy of the report. Credit bureaus are not required to give the consumer a report, but they must tell the consumer what is contained in it.
Credit bureaus need complete information to insure they send the consumer the correct credit report. If a consumer has been turned down or denied credit in the past 30 days, they are entitled to receive a copy of the credit report free of charge. A copy of the credit denial should always be included with a request for the report. In order to comply with federal law, lenders must provide the consumer a report showing the name of the bureau from which they obtained the credit information. Each time a consumer applies for credit and is rejected, the creditor must advise the consumer why he was turned down and which credit bureau was used. This written rejection notice permits the consumer to get free credit reports. (Email sam@bclh.com for sample letter). If the consumer has not been denied credit in the past 30 days, a modest fee of $5 to $15 will be charged for the requested information. The consumer also has the option of going in person to the credit bureau. The visit should be made exclusively to pick up the report, not to become involved in a discussion or argument with the clerk regarding the content of the report.

2) Reviewing the Credit Report
Once the consumer has received the report, they should make sure they fully understand it. Since all credit bureaus have their own method of reporting, it is imperative that the consumer learn how to read and interpret the information collected for the report. Credit bureaus will provide the consumer with answers to any questions and explanations regarding the reporting format.
Then, the consumer should make a list of any items with which they disagree. Start with name, prior address, date of birth, social security number, employment, previous employment and any other personal items.
Next, review the credit inquiries. As you recall, each time a credit report is run by a subscriber, it is automatically recorded on the credit report. No one may run a credit report unless the consumer authorizes it. The consumer does not want excessive credit inquiries on the credit report. If a creditor sees a lot of activity in a file, he will begin to wonder why the consumer has been turned down so many times or why the sudden interest in so much credit; it may make the creditor uneasy.
The consumer should then carefully review the credit and payment history, writing down any items with which he disagrees.
All derogatory items must be removed after a specific period of time. Bankruptcies are removed ten years from the date of the bankruptcy. All other derogatory items including liens, judgments, late payments, charge offs, repossessions and convictions must be removed after seven years from the date of the last activity. Most credit bureaus have their computers programmed to remove these items automatically a few months prior to their anniversary date.
Few creditors, not to mention consumers, are aware that credit bureaus may report a consumer’s entire credit file since its inception (including all negative information) to a requesting subscriber if the subscriber is involved in granting the consumer certain items.

3) Addressing The Disputed Items
The next step is to send the credit bureau a formal letter listing all the disputed items and the reasons for disagreement. Sample letters addressing different inaccuracies follow as reference. The consumer should request investigation and resolution of all items. The wording should state that “these inaccuracies are highly injurious to my credit rating.” “Injurious” is the key word. The letter should also contain a request for an updated copy of the credit report once the investigation has been completed.
When writing a credit bureau, always write neatly (type if possible.) Be clear and write directly to the point. Never use foul language, make threats or recount personal stories. Always try to document the requests for investigation with copies of checks, bills, notes or any other type of proof that may be available.
Email sam@bclh.com for a "sample dispute letter for items in credit reports that have been inaccurately reported." Credit bureaus are required to investigate or reinvestigate all items the consumer disputes on his credit report. The Fair Credit Reporting Act clearly states that credit bureaus do not have to honor a request if the credit bureau feels the request is “frivolous or irrelevant.” Credit bureaus in actuality, however, seldom do so. The Federal Trade Commission (governmental agency responsible for overseeing The Fair Credit Reporting Act) has advised credit bureaus not to use this as an excuse to not investigate requests unless they are prepared to defend their refusal in court. Email sam@bclh.com for "sample letter for For Items in Credit Reports - Belonging to a Former Spouse."
Once the credit bureau receives the consumer’s letter, they have a reasonable amount of time (usually 4 to 6 weeks) to verify the validity of the disputed information with the original reporting subscriber. Remember, all information can only be added or deleted from a credit report by the subscriber (creditor); credit bureaus only report what they are told by the subscriber.
The consumer should always send all correspondence to a credit bureau via certified mail, return receipt requested. The consumer should also start a file and keep copies of all correspondence and make written notes of any conversations, giving the date, name of the person spoken with and the pertinent points discussed. Email sam@bclh.com for "Sample Dispute Letter for Items in Credit Reports - Not Belonging to the Consumer"
If, after a few weeks, the consumer has not received a response from the credit bureau, they should send a letter inquiring why. Or, the consumer may want to follow up with a telephone call. Whenever communicating with the credit bureau (verbally or in writing), regardless of what they say or do, never use foul language, threaten them or get upset. These actions can only hinder, not help. Email sam@bclh.com for "Sample Follow Up Letter No Response to a Dispute Letter "

4) Reviewing the corrections
When the consumer finally receives an updated investigated credit report, they should compare it with the initial negative report. On an average, about 50% of the disputed items will have been eliminated. Some credit bureaus will put “no response” if the subscriber did not respond to the credit bureau’s request for verification of the disputed item. Why were some items removed and others not? Simple. Credit bureaus must verify the disputed information with the subscriber; the subscriber, in many instances, will not bother to respond to the credit bureau’s request. The subscriber may not have the personnel available to fulfill the request, they may verify it without checking their records, or they may review their records and find the information is or is not accurate. (If an institution only keeps records for 24 months after the transaction has been terminated, how can they verify a late payment if the request for verification comes on the 25th month?)
The consumer then must “weed out” the subscribers who are accurately reviewing their records and those who are not. The next letter to the credit bureau should ask them to reinvestigate the items which are still disputed and clearly state the reasons. In this letter it is also wise to request the company names, address and telephone numbers of the subscribers with whom the credit bureau is verifying the disputed inaccuracies. This allows the consumer to follow up directly if the disputed items are not removed. Email sam@bclh.com for "Sample Dispute Letter For Items in Credit Reports - Inaccurately Reported After Investigation Request"
The step we have just described, is how many professional credit repair services remove negative items from credit reports true or not. The credit repair services will send the credit bureau letters denying everything derogatory including bankruptcies and foreclosures knowing about 50% of all items will be removed because of the reasons previously stated. They will continue to blitz the credit bureau with requests for reinvestigations until the credit bureau or the subscriber fails to comply in the allotted time. The best month of the year is December due to the heavy work load around the holidays!!!

5) Contact The Creditors Directly
If after completing these steps there are still items the consumer wishes to remove, it is time to contact the subscriber directly. If possible, this should be done in person; however, always make an appointment. This will ensure the subscriber is available and will also demonstrate to the subscriber that the consumer is driving there to see him exclusively to try to resolve the dispute. Only meet with a credit manager or someone in a position of authority who has the decision making ability to negotiate the debt.
There are three key words to remember at all times when dealing with a subscriber. Negotiate! Negotiate! Negotiate! As with credit bureaus, regardless of what the subscriber says or does, the consumer should never get mad, make threats or use foul language. Email Sam Smith at sam@bclh.com with any questions or copies of the sample letters