Financial institutions are more careful in granting loans to loan seekers in these hard economic times. If you can move your rating from bad to good so you can be in their good books, why not?
A few effective steps will sure get you on track. There are two ways you can improve your rating. You can save yourself some time and effort by paying an agency to do the job, or you can save some money by learning the steps that will help you in the repair process. Let me give you some simple and useful information on this.
Get a copy of your reports at annualcreditreport dot com from the three bureaus. The law that governs credit reporting empowers you to get a copy each from Experian, TransUnion, and Equifax once a year. Search your three reports (Equifax, TransUnion and Experian) thoroughly for any error, inaccurate or closed accounts, or other information that is a threat to your rating. Mark any information that is either negative or incorrect.
Write down any negative or incorrect information starting with the one with the greatest risk. That is, you begin with the most damaging account to the least damaging one. Your next move when you have fished out the negative accounts is to begin writing a letter of dispute. A dispute letter is what you will send to the credit bureau that has a negative account entered in your report. The most important information that should be contained in your letter is the reason for your dispute
Now take note of this. For every negative account, write an individual letter. Never make the mistake of disputing two negative accounts in one letter. This is because the bureaus have the right to label your letter "frivolous" when you dispute more than one problem in just one letter.
According to the Fair Credit Reporting Act, the bureaus have only 30 days to start and finish their investigation. When their investigation is completed, they are also required to notify you within 5 days.