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Steps in Repairing Bad Credit

By Ruth Racey
Published: Monday, April 12th, 2010

There are many instances that your credit report may contain bad and, unfortunately, inaccurate data in it. This will prove to be very bad to your credit rating. Remember that it is in your credit report where most data will be processed in order for you to get your credit rating. Things such as your credit history, the number of your credit cards, your payment history, and even your outstanding balance can all be seen in your credit report. In this case, it is important for you to take note of the fact that all of this information is the one that will determine whether you are to be successful in getting a loan approved, as well as having high or low interest rate payments.  

Surely, given such risks, the last thing that you would like to have is harmful and inaccurate bad credit in your credit report. The sad thing is, according to one study, there are more chances of your report having inaccuracies than not. Fortunately, even though you have bad credit, there are certain ways to repair it. Here are the steps how: 

  • Always check your credit report 
    It is a good thing that there is such a thing as a free credit report. In addition, these free reports can be obtained yearly, either from the three main credit agencies (Experian, TransUnion and Equifax), or from other agencies who are accordingly recognized to give free credit reports in behalf of these three main credit agencies. By regularly getting your credit report, it is easier for you to check whether there are errors or not. 
  • Document all of the inaccuracies in your report
    In is also important that you must be able to check and document all of the data in your report that you think is full of inaccuracies or errors. This is very necessary, especially when you are going to challenge and dispute such errors. Remember the saying; “no proof, not guilty.” And documenting all of those errors is your most solid proof. 
  • Challenge inaccuracies in your report
    In addition, remember that the law is in your side. According to the Fair Credit Reporting Act, or the FCRA, all concerned agencies are in fact required to correct all the errors in your credit report, as long as you prove them. In this case, do not be afraid to do so. This is the only way for you to correct those errors.

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