The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CRSA, CSP, GRI, ePRO ®, REALTOR ®, RealtySouth
Credit Scores – Improving Your Credit Score
Let me begin with a statement of what I hope is already obvious: Responsible credit behavior and use are the keys to a good credit score and all the benefits that come with a good credit reputation, which is after all what a credit report is … your reputation as to how well you handle your credit obligations. Having said that, I also know that bad things do happen to good people and it is for those that I offer these credit repair recommendations.
As we’ve discussed over the course of the past several weeks, your credit score can be either a wonderful asset or a huge liability… So I recommended that you check your credit report/file at least once every twelve months (just in case you missed those instructions reference the November 24th post Guarding & Protecting Your Credit Score… to review its content as to how to make inquiries into your credit and discover possible errors.
So you’ve done that and you just discovered errors on your credit report, or even worse, accurate references to late payments or other debt-related issues. Take a few deep breaths and try to stay calm, because the errors can be fixed. It’s even possible that some of the negative items can be eliminated too — and without help from companies that promise to repair your credit.
Don’t let anyone fool you into thinking you need to hire a professional to repair your credit. The truth is, there is nothing a credit repair company can do to improve your credit that you can’t do for yourself. So, save yourself some money and the hassle of finding a reputable company and repair your credit yourself.
Negative Entries
Bankruptcies remain on your credit report for up to ten years, while other types of entries are generally reported for seven years. If an account that was previously past due has been brought current, and has been either paid off or kept current for at least a year, the creditor might agree to an early deletion of the past due references. Write a letter to your creditor and request that the negative entries be removed. They’ll often comply if they see you are up to date and handling your account in a positive way.
Another tactic you can use to clean up your credit report is to dispute a negative item even if you believe it is accurate, but you’ll have to follow your conscience to decide if that’s an ethical way to go.
If Changes Aren’t Made
If the credit reporting agency says the original information is accurate, it must provide you with a written notice that includes the name, address, and phone number of the person who made the report. If you still disagree, initiate a second investigation.
Unfortunately, in the real world the reporting agencies often try to sidestep that requirement, giving you standard, computer-generated information rather than the facts you need to find the person or department who made the negative report. Keep plugging away until you have the answer you’re looking for. If your attempts to correct an entry are unsuccessful, you can ask the reporting agency to insert a 100-character explanation next to it that explains your side of the story.
