Top Reasons People Fail When Repairing Their Own Credit

Reasons people fail when repairing their credit

#1. Not understanding their rights. The Federal Trade Commission has numerous laws about credit, credit scoring, credit reporting, etc… Understanding these laws and, in particular, the individual “statues” within the laws help immensely when correcting problems with the three major credit reporting agencies. (Experian, Equifax & TransUnion) Most people don’t have the time or expertise to read, study, and understand what can be done to improve their credit.

#2. Documenting the entire process of correcting inaccurate information on their reports. It is estimated that up to 80% of Americans’ credit reports have erroneous information on them. Documenting when letters are sent and knowing the Credit Bureaus and Creditors’ timeframe have to respond is very important. Also, remember to send all documents Certified Mail with a return receipt request!

#3. Being patient during the process. Many people I’ve spoken with over the years get exhausted with these vast entities’ bureaucracy. You must be persistent, patient, and knowledgeable in your efforts.

#4. Disputing only with the Credit Bureaus. When challenging inaccurate, wrongful, or obsolete information on your credit reports, it increases your results if you go after the creditors, both original and whoever may have the information at this time. As you probably know, “bad debt” is sold many times, and thus the same negative information can be reported by multiple organizations!

These are just a few reasons people get frustrated and give up in trying to improve their credit. Follow these simple rules and begin the first step in proactively addressing your credit issues, and you’ll be well on your way to an eventual “A” Credit Rating!

Unfortunately, we have not spoken about possibly the most significant factor: Procrastination! This is due to many things for people, such as not knowing where to start. How to address the “big three,” Equifax, Experian, and TransUnion, But also what about the original creditors! Knowing which to go after and, more so, how to go after each of these entities is paramount regarding your success rate!

Take time and visit http://www.ftc.gov and type in credit in the ‘submit’ section. This will give you all of the relevant laws regarding your rights as a consumer. Credit Bureau rights, time frames for processing your reason for removal, etc. Yes, it is timely but well worth the effort!