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Credit Education > Credit Repair > Common Mistakes in Credit Repair

Common Mistakes in Credit Repair

By Janet Lacey
Published: Saturday, December 19th, 2009

Borrowers can end up in many ways in terms of their financial stability, some become relatively better other become worse. Nonetheless, all borrowers are always burdened with the task of appearing credit worthy in the eyes of their prospected creditors and even investors. The volatility of the whole financial market can put those who are appearing to be credit worthy as unworthy credit risks in an instant. There are sudden and slow fluctuations in the credit worthiness of individuals, both of these require an expert credit repair to insure a much better financial venture. There are many pressures that credit repairing can bring to those who are doing it and some individuals unknowingly make their current credit worthiness rating worse.

The disputing process is the main essence of credit repair. During this process credit account holders are being empowered to contest wrong information included in his or her credit history records. It is a due process that gives a leveled ground for those who are wrongly accounted for by the major credit bureaus. No one can tell how a single correction will affect the report, but in whatever gravity it is surely for the better. Failing to maximize this due process will take away from the credit account holder all of his or her legal rights to claim that his or her credit history is wrongfully recorded.

After the passing of the Fair Credit Reporting Act or FCRA, credit bureaus are required to send a response to filed disputes. This law only gives the credit bureaus 30 working days limit to response. In the event that the bureaus failed to respond, the disputed negative information should be automatically deleted in the next credit report and score of the disputing party. Upon waiting the 30 day limit, credit account holders who filed for dispute should be keeping records of the actions that they have taken. Failing to keep a record can give the credit bureaus an option to claim that the 30 day limit has not yet started because the disputing party was not able to establish that he or she has already took actions for the dispute.

Adding up to the damages of a bad shaped credit report that is under repair is that the owner of the report is too unrealistic in repairing his or her account. A good and reliable credit repair would take a long time of closely studying all of the possibilities of the dispute process. Rushing things would not make things better or at worse it can even make the repair process messier.

The processes involving credit repair do not promise instant results. These processes can be overwhelming with its entire required paper works. It can also be frustrating because the major credit bureaus at most times are stubborn to admit that they are wrong in their documentations. No matter how long it takes the credit account holder should always be patient and persistent. No matter how good the dispute argument maybe, if its owner is impatient nothing good will come out of the efforts to get a better credit worthiness rating.

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