Tuesday, January 27, 2009

Repairing Items on Your Credit

By Ricardo Mendiola

Mistakes happen all of the time. You might have bills listed on your credit that you know are not items that you are responsible for. It is important to have these things removed. If you have items that look really bad and you are responsible for them you will need to pay them. However, you can explain why certain things are on your credit.

Errors on your credit may cause your credit score to be lower than it should be. It may even be the reason you don't qualify for the car or home you really wanted. You should never allow an error on your credit to remain on the reports.

If you have mistakes on your credit report it is important to have them removed or fixed. There are many different types of mistakes that might appear on a credit report. You might show a collection where you owe more than you really do. An item may be listed that shouldn't be there at all. Your contact information may be inaccurate. Any error listed on your credit can be repaired and you must do something about it.

Disputing items on your credit reports is important for many reasons. The first thing you need to do is get copies of all of your credit reports. This is because some things may be listed on one report that will not be listed on the others. Some credit reporting agencies say that you should dispute everything on your credit. This is because if you do owe a company from years ago and they don't exist anymore the items will be removed. Companies change hands all of the time also and many old debts are non-existent to other businesses. If you are sure you owe the money you should pay the debt.

When you dispute erroneous items on your credit you will see them disappear after about 120 days. When you write a letter of dispute to the crediting agencies disputing the claim the business has 30 days to prove you do or do not owe the money to them. If you do not owe the money the items will be removed from your scores in another 90 days. You cannot speed up the process of removing errors from your credit reports but they will be removed.

Errors on your credit score can disable your financial freedom. It is important to dispute items on your report. You will benefit from disputing items on your credit so they will be removed and your scores will increase. You might be one point to low for a better interest rate that could actually cost you thousands. Always correct errors and dispute incorrect items on your credit. You will see the items disappear from your reports and your scores will increase.

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