Credit Restoration Tips

Obviously, the best way toward credit restoration is responsible spending and prompt payment of bills. However, what if your bad credit stems from inaccurate information on your credit report? What can you do? Legally you can request for a probe of data in your file which you contest as erroneous or not complete. No fee is necessary for this. Some folks engage a company to look into the data on behalf of them, but this attempt at credit restoration is not really necessary. Any credit restoration methods that can be done lawfully by a credit repair company can also be done by yourself at small or no expense. Many companies claim to be able to remove bad items from your credit report. However, this sort of credit restoration is really just a pipe dream. One cannot lawfully remove correct and damaging data from a credit report for credit restoration purposes.

For credit restoration, inform the consumer reporting firm in writing, what data you think is erroneous. Send photocopies, not originals, of all documents to back up your contention. Besides supplying your full name and mailing address, your communication should list out the erroneous items you contest in your report; mention clearly the facts and the basis on which you contest the information, and demand that the erroneous data be withdrawn or rectified. It is a good idea to attach a photocopy of your report with circles around the items of dispute. This type of credit restoration method can be highly effective. Just make sure to dispatch your communication by certified mail or “return receipt requested” to obtain evidence that your communication has reached the consumer reporting company. Ensure that you retain copies of your contest letter and attachments.

The consumer reporting companies are obliged to scrutinize the disputed items within a period of 30 days – not if they think that your contest is frivolous. They are required to send all the related data you furnish about the error to the agency that supplied the information. On receipt of the contest notice from the consumer reporting firm, the data supplier is obliged to examine and reappraise the relevant data, and report the outcomes to the consumer reporting company back. If this examination proves that the contested information is indeed erroneous, the data supplier must inform the consumer reporting companies across the country so they can rectify the errors in your file.

On completion of the examination, the consumer reporting company is required to inform you in writing the outcomes along with a copy of your report free of cost if the contest culminates in a modification. If a data item is altered or removed, the consumer reporting company can not include the contested data in your file again provided the data supplier does not confirms that the item is correct and in full. The consumer reporting company is also required to provide you in writing full details (name, address, and telephone number) of the data supplier. You have the right to ask and the consumer reporting firm has the obligation to send details of any rectification to all those who got your report during the last six months. Additionally, you can demand that a rectified copy of your report be mailed to anyone who got a copy within the last two years for employment reasons.

In your credit restoration efforts, if a probe doesn’t settle your contest with the consumer reporting company, you are entitled to demand that details of the contest should be incorporated in your file and also in reports to be issued in future. You also have right to demand the consumer reporting company to give your statement to all those who got a copy of your report recently. However, be prepared to pay a fee for this requested service.