There is a saying that fortune favors the brave. This is definitely true when it comes to the world of finance. Waiting for something good to happen in the business world will rarely yield as much as going out and making them happen. A common example is a bad credit report. This problem is faced by millions of Americans today.
How should you try to solve the problem of a poor credit report? You can wait until the recession ends, economy improves, wages increase, and all of your credit card interest to come down all on its own. Waiting for this may take an entire lifetime but will not fix your credit report for the immediate future.
Recessions come and go, as well as many factors that lead to financial troubles. Having good credit can help you secure money during troubling times and help you enjoy life when things are looking up. This means that a proactive approach is necessary if you want to improve your credit report.
What are the proactive steps that need to be taken? The FCRA (Fair Credit Reporting Act) states that all information contained in your credit report must be verifiable at any given point in time. If the lender is unable to verify items on your credit report, the credit bureaus are obligated under law to remove these items. Asking for verification is the first proactive step in clearing your credit report.
There are many reasons why claims can’t be verified on a credit report. They can vary from destruction of files and records, time limitations on a debt, and actual errors in the claims themselves. Under these types of circumstances you can easily file a dispute and get rid of a negative item.
You may be surprised at just how many errors are in your credit report in the first place. Errors in a credit report are so common that very few individuals actually have no errors in their report. Getting rid of these erroneous marks will have a very beneficial effect on your credit score.
You will need to properly draft a dispute letter and mail it to the credit bureaus. Make sure you insist on proof of receipt of the letter along with the documents that you have sent. The bureaus must verify all of the disputes within 30 days. If they aren’t verified, then these negative marks must be removed from your credit report.
You will have to remain patient during the process but taking that first step is important. The soonest you will see results is 30 days, but if you are able to dispute your claims properly, your credit score will rise and you will be in a much better position for future financial needs.