Importance of Credit Repairing& how to do it yourself?

Credit history or credit reports are very important in many countries which give the complete record (negative records) of any individual or a company about their loans, past borrowing history or bankruptcy and any late payments. Credit repair is to make sure that the bureau maintain the correct records and update them properly.

Why is credit repair important?

The credit report is important because it saves a lot of money for you. When you take loans, if your credit score is good then you can get loans for a very less interest rates. Everyone has a credit report. But the problem is that more than 50% of the credit reports contain wrong information as they are not updated regularly. So the credit repair is very important. Credit repairing allows you to correct all the wrong information and remove all the errors from your credit report. This can be done by yourself also.

How to do credit repairing yourself?

Repairing your credit is quite easy. The first thing you need to do is to get you credit score report from one of the agencies. If your loan is rejected due to your credit score then you can get the free credit score from the credit score agencies within 60 days from the rejection. Once you collect your credit score report then you can check the report and then send a letter to the credit score agency stating that what has been not updated properly or what is that which is wrong in your credit score. When you send a letter then it is always good to keep a copy of the letter with you. It is will be helpful to refer it in future if required.

Then the credit reporting companies will have 30 days to work on the disputes raised by you on your credit report. When their investigation process is completed and they finalize that their reports are wrong then they need to update their records accordingly and also send copy to the organization or the creditor who has given this wrong information. After this entire process is completed then they will send you a copy of the new credit report.

If the issue is resolved and the credit report is updated then it should be fine but if the issue is not resolved then you should ask for the dispute added statement and you should approach the organisation or the creditor who have provided the wrong information. You should a letter in writing that they have provided wrong information to the credit reporting companies and it is also good if you can add the supporting documents to the letter. They will try to resolve the dispute and send the report to the credit reporting agencies accordingly and your credit report would be updated immediately according to the update provided by the creditor.

Sometimes you may feel that why should we be doing all this. You can understand if you are calculating the interest that you are paying for the loans you have taken. You can save a lot of amount if you are having a credit score. It also can help you in getting a good job. Sometimes the amount you save after you update your credit score report can be really huge.

This credit repair is essential for everyone, as it decides many things of the life. When you deserve to have good credit score then why accept the wrong credit report and pay extra interest. If you have no knowledge about how to handle this credit repair then you can hire the credit repairing specialist to do this job for you.

Article written by

D Smith is a hardware engineer by profession. But that does not prevent him from showing interest in a variety of fields. He is also a web enthusiast and loves to blog on topics ranging from fashion to wedding and from security to environmental issues. Follow me on Google +

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