Finance and Money

Improving Credit Rating

It is important to build positive credit as well as removing bad credit items when you are repairing your credit report. The easiest way to create positive credit is by paying your monthly bills.

This will help you to create a positive payment history. A good payment history is almost as important as removing bad credit items from your report.

In addition you need to remove bad credit items from you report. You can do this by disputing inaccurate items.

There are estimates that 1 in 4 people have an inaccurate negative mark on their credit report that is costing them money on higher interest rates. It is your responsibility to know what is on your report and to remove inaccurate marks.

Often a divorce will result in inaccurate negative marks on your credit. During a divorcee the judge will divide the debts between the two parties.

It is common for one party to neglect to pay their court ordered debt. However this results in damage to both parties credit report.

Frequently the other party will not even be aware of the delinquency until it is too late. They played no part in the delinquency yet their credit will still be damaged. This is an inaccurate mark and when challenged should be removed by the credit bureaus.

In addition lender mistakes are often a result of inaccurate negative listings. Lenders make mistakes too, however you are the one that will pay the price for their mistakes.

There are a variety of lender mistakes however a common one is a monthly amount due will change and the borrower will never be notified. The borrower will continue to make their on time monthly payments yet every month their credit is reported negatively.

This is because they are not paying the new amount due. They were never notified and continued to make regular on time payments, so it is not their fault but they will pay for the lender’s mistake.

This is an example of a negative mark that should be disputed and removed. There are plenty of other examples of when borrowers have negative marks reported on their credit when they are not at fault.

The Fair Credit Reporting Act was passed to help individuals that find themselves a victim of these situations. This law says credit bureaus must investigate a disputed listing.

The hard part is to submit a “valid” dispute and have the bureaus actually conduct an investigation. Often bureaus respond to dispute letters requesting more information about the dispute.

I suggest you be patient or you can hire a professional credit repair service. What ever method you choose you do not have to live with bad credit and a low credit score.

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