Fix Problem Credit |
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Your credit history is thoroughly investigated by businesses before evaluating your applications for credit, insurance, employment, and even leases. A good credit rating is important, as based on your credit payment history, businesses decide on whether to give credit or not, provided you are given a just treatment. Sometimes problem with credit can arise out of a temporary loss of income, an illness, or even a computer error. It takes time and patience to solve a problem with credit. Credit laws protecting your right to obtain, use, and maintain credit have been enforced by the Federal Trade Commission (FTC), but these do not guarantee that everyone will receive credit. These laws require that businesses give all consumers a fair and equal opportunity to receive credit and to resolve disputes over credit errors. Read on to understand your rights under these laws and for some practical tips. Do not be misled by ads promising quick-fix solutions to your problem with credit, and try to find out what the law stipulates. You have the right to know what your credit report says, per the provisions of the Fair Credit Reporting Act. The creditor must provide you with the name and address of the credit bureau it contacted, if credit is denied to you based on a report from that credit bureau. Moreover there will be no charge if you contact that bureau within 30 days to learn what is in your file. You cannot avoid problems appearing on your credit report, but errors and misunderstandings can be amended by writing letters to be included in your credit reports. Letters explaining a sudden loss of job, a layoff, or a long-term illness, along with documentary evidence, can influence lenders views when reviewing your credit report. Credit reporting agencies are required by law to include letters of explanation along with any documentation with the credit report. As a general rule, a problem with credit usually stays upon your record for 7 years. Solving Your Problem With Credit Your purchasing power, as well as your chances to get a job, rent or buy an apartment or a house, and buy insurance all depend on your credit report. You can get additional credit if you have a history of timely credit payments. Accurate negative information can stay on your report for 7 years and bankruptcy can stay for 10 years. If you have problem credit, contact your creditors immediately and tone down your payment plan to a more manageable level to keep you away from problems with credit. Don't wait until your account has been turned over to a debt collector. Here are some additional tips for solving problem with credit: --To contest a credit report, bill or credit denial, contact the appropriate company in writing and send it return receipt requested. --When contesting, include your name, account number, the dollar amount in question, and the reason you believe the bill is wrong. --Ask for a written verification of a debt, if you have any doubts. --Always send copies of receipts, sales slips and billing statements and keep originals with you, if you dispute a credit bill or report. --Beware of businesses offering instant solutions to problem with credit. --Resolving problems with credit can take time and effort. --You can do, for little or no cost, what a credit repair company can do. You can contact a credit counseling service if you can't resolve your problem with credit yourself. They will help to set up a realistic budget and negotiate repayment plans that are acceptable to you and your creditors. These services usually are offered at little or no cost. Others offering low or no-cost credit counseling programs are universities, military bases, credit unions, and housing authorities. |
