Credit history repair – great free tips for repairing a bad credit history and the best part is its easy to do!

Credit report score

If you want to improve your credit score you need to read this!


It was just announced on the news the other day that the average American has bad credit due to the serious recession that we’re in right now. Now bad credit can mean anything below a 620 (generally speaking a 620 and above is considered good credit). So whether you have a credit score of 490 or 619, or even if you have a better credit score and just want to improve it you will definitely learn a lot from this post.

I have had years and years of experience in the financial business dealing with credit scores, loaning out credit, reviewing credit reports and more. What am to show you here is what the professionals charge you $200 to $500 or more to do. There’s really only a few secrets of the trade and they work very well.

First you have to understand that there’s more than one credit bureau and more than one credit score. There are three main credit bureaus out there; Trans Union, Equifax and Experian. Nothing else matters but these three. Many banks or even automotive dealerships that are granting credit for auto loans or mortgages will routinely use one out of these three. In the southeast Experian tends to be used the most. But that does not mean to rule out the other two.

You need to know what is on your credit report at all three credit reporting agencies or bureaus. So my advice to you, first, is to go and pull your credit at all three credit bureau’s. Be sure and pull it with the credit score. A free credit report never includes the score nor the explanation as to how it is derived which is very important first people that are not directly employed in the financial world.

You can easily pull your credit at all three credit bureaus at any one of the three of the bureaus through their website for a price of around $40-$50 and this will include all three credit scores plus they will provide you with some paperwork that explains how the scores are derived and explain them to you.  Do not waste your time with any of the free credit report ads you see on TV.  These are not free and what they do is to provide you with a report,  but they add you to a yearly recurring fee or monthly recurring fee that adds up very fast to be quite expensive and basically useless other than getting your credit report.

Once you have your credit report look for errors on it and things that don’t belong.  I would also suggest that you circle any problematic or negative information.  This is what is downgrading or giving you a low score.  These are the areas you want to work on.  Now the first thing you do is create a letter in business format that you will send to the bureaus that have this negative information listed stating that you are arguing the validity of the debt or negative information.  Upon receipt of this the credit bureau in question has 30 days to go and the listener response from the original or current creditor or lender. 

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If they cannot validate this debt in that period of time it is dropped off of your credit report and an updated credit report will be sent to you specifying that the account was dropped or corrected and why.  Sometimes you have to be diligent and repeat this process a few times.  Some lenders will give up after the second or third complaint from the same person about the validity of a debt.  This is usually most common in older accounts and in paid off or closed accounts.  The lender or creditor does not have the interest and costs late pursuing credit reports and loan information for closed or paid off debts and accounts that they are not going to be collecting any money on.

Here is the contact information for all 3 credit reporting bureaus:

Experian
P.O. Box 2104
Allen, TX 75013
1-888-397-3742

Equifax Credit Information Services, Inc
P.O. Box 740241
Atlanta, GA 30374                                                                                                                                                                                                                                                                                                                                         1-888-567-8688

Trans Union                                                                                                                                                                                                                                                                                                                                                           P.O. Box 1000
Chester, PA 19022
1-800-888-4213

Now this will obviously be less effective on a current account that has some late payments and such on it.  The primary solution there is to not pay late and don’t over extend your credit.  But if you follow the above prescribed method you can remove old debts and negative information from closed in paid off accounts that would normally sit on your credit report for seven years rather quickly. 

Now another thing to note here is that with accounts being transferred and sold from one company to another, like with bad debts, charge-offs and collection accounts, you can do the same method and argue the validity of the debt is.  Many times these creditors because they are not the original creditor do not have all or even any of the information of the debt available to them and they may not be able to prove or contest your request on the validity of the debt.  As debt gets older this becomes more and more prevalent.

Now this does not mean that the creditor or collection agency involved will stop collecting or trying to contact you, but a war move their entries from your credit report and increase your score.  Bottom line the higher your credit report score is the better the loans, rates and terms you will be able to get.  This is also important to have a high credit score nowadays because many employers look at your credit to grant you a higher paying job or to hire you for a higher paying job.  So if you have bad or poor credit is going to hurt you in a lot of areas – even with your car insurance and homeowners insurance.  Insurance companies see you as being high risk if you have lower credit and will charge you a much higher rate for your policy. 

Below is a sample letter contesting the validity of a debt.  You can use this to argue your own debts obviously just change the names and the debts to include your own.

June 12, 2009

321 Main St.

New York, NY 11221

Experian                                                                                                                                                                                                                                                                                                                                                                P.O. Box 2104
Allen, TX 75013
1-888-397-3742

To whom it may concern:

I am disputing the validity of a negative entry on my credit report with your credit reporting bureau.  I noticed a wrongful entry under account #31283464564 with creditor BB&T.  It shows me as having been late for times one year ago and I have never been late on this account.  The dates in question are 2/14, 3/14, 4/14 and 5/This is erroneous and needs to be corrected immediately.  I look forward to your reply on the correction of this matter. 

Sincerely,

John Q. Consumer

Be sure and send your letter either registered mail, return receipt requested or delivery confirmation so you know the letter was received by the credit reporting bureau and you can start counting the 30 days they have to reply to you as to the disposition of the account and negative entries in question.  Remember, they have just 30 days to get this all cleared up.  If they can’t the negative entry must be corrected or removed.  Good luck and remember this is the main tactic and the only tactic that professionals to correct credit report scores and they charge anywhere from $200-$500 to do this and you can easily do the same for free or next to nothing.


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3 Responses to Credit history repair – great free tips for repairing a bad credit history and the best part is its easy to do!

  1. Charlie Sanders on July 8, 2010 at 4:31 PM

    Great advice here. I was searching the Internet for a good letter to send to the credit reporting bureaus. You had everything I need in this article. Thanks again and keep up the great work! I love ReportYourComplaint.com!

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  2. Chance Stowers on July 11, 2010 at 11:45 AM

    Great information. This really does work. I just used it on a account that was 5 years old and was showing very negatively on my credit score – 580. I disputed it even though it was correct and guess what? The account had been passed around and resold several times and the latest creditor could not provide documentation on the account in the 30 days so the credit bureau (Experian) had to drop it. Just like you said they did this for free and even mailed me a new credit report showing that the negative entry was dropped. Now I have a 690 and I qualify for much better terms and rates on credit and loans! Thanks again for the great advice – I am an avid reader of ReportYourComplaint and look forward to what new complaints and helpful info you guys post every day! Your site is truly an awesome website resource and far better than any other consumer reporting website out there!!!

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  3. Rebecca on July 12, 2010 at 2:19 AM

    This could be some fantastic information. I will definitely give it a try! I have a 490 credit score due to a bankruptcy and foreclosure. I hope it can help.

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