Nothing is forever, not even bankruptcy. In fact, this much feared word is erased from your credit report after 10 years. Know your rights and be eligible for any type of loan. It is just a matter of being one step ahead of the circumstances. We give you an insight on how it works.
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Advertising Credit Repair
Much is advertised about credit repair and as a product on the line for sale, there are tons and tons of hype and sales copy. Once we get through the initial curtain, little is left but a software program you must buy, someone who does it for a fee or a set of letter templates for a “convenient” address to the credit bureaus, for a certain price as well.
The Credit Bureaus
They are agencies that are making business and who sell their reports with your information to the subscribers. A subscriber may be any store, bank, car dealer or lending company. They work in good faith, but somehow or other the amount of incorrect and outdated data rises to around 35%. This is where credit repair comes in.
What The Advertisers Do Not Say
What they do not tell you when they offer you a product is how the credit bureaus function, and how the entries are done. They do not say that the credit agencies do not like to be addressed in a legal way because it makes them feel that you are threatening them with taking legal action if they do not correct the entries.
So, How Do We Address Them?
The best way is to write as what you are: A normal citizen who needs credit and wants to inform about certain inaccuracies. Even if you are an attorney, write to them in plain English, stating what you want from them in a polite way. That’s all there is to it.
Get Your Credit Report
You have the right to ask for one report per year, free. And even though the bureau may charge you a fee, it is never more than 15 dollars or so. Once you have your report, start doing your homework. Check out inaccuracies, outdated data, like debts that you have already honored and errors due to mistaking your for somebody else with your same name.
Now make sure you have proof of what you are mentioning as wrong, for them to check out and correct accordingly. Any slow payment or debt should not remain on your report for more than seven years and bankruptcies, not more than ten years. Everybody has a right to change their attitude towards credit, so you do not need to pay today, for yesterday’s misdoings.
And Now, Build Up
Now that you have screened out “wrongs”, begin to build up the “rights”. You can do this by taking very small loans, easy to pay and for short terms. Each one will add points to your score, making you eligible for larger loans very soon.
The report does not register the amount of the loan, but will take good note of your duly payments. So, we must not forget that loans, after all, are an important part of our everyday life.