Fixing Bad Credit Takes Action

One of the first things you can do when  fixing bad credit, is to obtain a copy of your credit report from any or all of the three major credit reporting bureaus. Your credit report will contain information on outstanding debt, inquiries, debt to income ratio, accounts and personal information. If any of this information is inaccurate, it could affect your credit score and fixing bad credit may be difficult.

Consumers can request a free copy of their credit report once a year from each of the three major credit reporting bureaus.

When you are fixing bad credit to improve your chances of getting a home loan, auto loan or credit card approved, the Federal Trade Commission, or FTC, has some guidelines you can follow.

The FTC advises all consumers to learn how to recognize those companies who are engaged in credit repair scams. There are some signs that can tip you off that a company may not be legitimate. When fixing bad credit, beware of a company that wants you to pay them before they provide the service. The Credit Repair Organizations Act prohibits these companies from accepting payment before they have delivered the service.

Avoid those companies that don't tell you what your rights are and what you can do for free when you are fixing bad credit. Don't engage with a credit repair company that advises you not to contact any of the three major credit reporting agencies. You should be wary of a company that tells you that you can erase negative information that is inaccurate from your credit report.

There are few companies that may advise a consumer to apply for a separate employer identification number to avoid using their Social Security Number or to dispute credit report information that is correct. This could be determined to be credit fraud.

How to dispute information in a credit report when Fixing Bad Credit

The credit reporting bureaus aren't perfect. Sometimes they make mistakes. Inaccurate or out-of -date information contained in the credit report can be corrected. The credit bureaus want to correct erroneous information. The incorrect information on the credit report can be as minor as outdated contact information or as serious as a debt that you have already paid. A consumer can dispute inaccurate information by following a certain procedure. Each bureau has a dispute procedure. And they are all pretty much the same. If you need to dispute information in your credit report, it is best to submit it in writing. The credit reporting bureaus will investigate your claim within 30 days, unless they consider it a frivolous dispute.

If you want more information on fixing bad credit, contact one of the three credit bureaus. If you need further information on debt related issues, contact NCO Financial Systems, Inc. Every page on our NCO Financial Systems, Inc. consumer help unit website, has contact information.

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