The New Laws Help You Re-Build Your Credit Score and Save Big $$$
Articles - Mortgage
Every person that ever used credit or took any type of personal loan created in the process in a financial file about him known as credit report. This is a collection of many different information items about that person like his current address, his source of income, his bill payment history also any legal history like trials, arrests, bankruptcy etc. The reporting agencies maintain and manage this information than sell it in a form of a report to employers, insurance companies and different businesses trying to assess the credit worthiness of that person.
by DanOSpark


Every person that ever used credit or took any type of personal loan created in the process in a financial file about him known as credit report. This is a collection of many different information items about that person like his current address, his source of income, his bill payment history also any legal history like trials, arrests, bankruptcy etc. The reporting agencies maintain and manage this information than sell it in a form of a report to employers, insurance companies and different businesses trying to assess the credit worthiness of that person.

People with good credit report have easier time being approved for loans and credit and most of the time is paying smaller monthly payments for the same loan amount. Today's media is full with promotions and advertisements of credit repair services that for a fee, suggest removing negative information on the report to increase credit score even if this information is correct. These are usually scams that not only take your money, but do not and will not deliver that promise. Only a conscious effort with a clear plan to pay the outstanding debt is capable of improving the report and increase credit score.

The Fair Credit Reporting Act (FCRA) was designed to assure that the data in each personal file of each consumer is accurate, kept private and it is used in a fair way by the official reporting agencies in the country. The FTC from its part is a key factor in imposing the FCRA on these agencies. The FCRA was recently expanded to further protect the consumers with new demands from the reporting agencies. These new additions are also imposed by law on the businesses that provide the information to the reporting agencies.

The FCRA states that both sides, the consumer on one side and the reporting entities (Individuals, businesses or organizations) on the other side have the duty and are liable that the information in the report is correct and complete. They are obligated to take the necessary action to accomplish that. Every person that finds incorrect information on their credit report has the right under the FCRA to demand that it is corrected in order to increase credit score.

When you find information on your report that is wrong, in order to correct it and increase your credit score you should contact the reporting agency directly. The best is to do it in writing, give in the letter all the information necessary to identify you and the specific case you are referring to. In simple terms explain why you think the information is not correct and why you demand to change it. Attach copies of any relevant documents that can support your claim. Do not forget to state that you demand the information removed or corrected.

If you identify that the source of the error or incorrect information is from the creditor, contact them directly in writing. Most creditors have an address to send complains to and it is located on their statements and documents. Write in this letter what are the reasons you dispute the information they provided and demand it to be corrected or removed and attach copies of supporting documentation. According to the new law the creditor has to inform the reporting agencies of your complaint and if they find out that your complaint is justified, they need to ask the reporting agencies to correct or remove the item from your credit report, something that for sure will increase your credit score? .

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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