By: Arthur Cooper
Submitted: 2010-07-23 10:49:08 | Word Count: 664
It seems like these days, you can’t turn on the television or get on the Internet without an advertisement offering to help you get your credit straight. And sure, it can be a little daunting, but there is no reason to dole out [sometimes outrageous] fees to a company that might not even be as effective as you can be yourself. Be your own credit advocate, and get help repairing your own credit score from a company like Credit Elves, who can offer valuable knowledge for free, and sample letters and easy-to-follow instructions for a nominal fee. It is free to dispute your credit report, according to the law. See about being your own best credit asset.
Know right off the bat that your credit score is different from your credit reports. Your credit score is compiled by FICO into a number that is used for easy reference by creditors, insurers and potential employers. It is based on payment history, number of outstanding credit accounts, arrest records, bankruptcies, foreclosures, accounts in collection, and what your current income is (calculating your ability to repay loans). While the exact method of calculating this score is confidential, you can find online many companies (including FICO itself) who will give you either a way to estimate it, or get the actual number for a small fee.
The Federal Trade Commission even recommends that you do repair to your credit score yourself. Claims from companies who say they can remove or drastically reduce your debt are usually scams, and sometimes downright illegal. They may charge you an exorbitant amount that never reaches your creditors, or make promises that your creditors never agree to.
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Contact annualcreditreport.com, and get copies of your credit report from the three major reporting agencies. The reports are free once a year, and they’ll request your Social Security number, current and previous addresses and contact information. You are also entitled to a free copy of your report is a company takes adverse action against you, such as denying you credit or a loan, or it negatively effects an employment opportunity. When you get your reports, check first to make sure your name is spelled correctly, your SSN is correct, and addresses have been reported correctly. Then look at the credit report itself. Are all of the payments you’ve made represented accurately as to timing and amounts? Do they have an accurate date of “Paid In Full” if that is the case? Have they charged you anything odd that you might not have agreed to, like a really high annual fee or charges that were tacked on and you were never informed about?
By law, credit reporting agencies and creditors must investigate any disputed charges within 30 days. They must forward all information you’ve provided regarding inaccuracies to the companies that provided the information, inform you, and if they agree that there was a mistake, remove the item from your credit report. You’ll get results in writing, and a new, free copy of the report if the dispute results in a change.
