Tips for Credit Repair

<h1>Tips for Credit Repair</h1>Author: <a title="Chane Steiner" href="http://www.articlesbase.com/authors/chane-steiner/43848.htm">Chane Steiner</a> Need-to-Know Credit Repair Tips A less-than-perfect credit score is common today. Missing a single payment can drop your score by as much as 100 points! Fortunately, learning credit repair is possible for anyone willing to pick up a few new techniques. It's a painful fact that credit scores slip quickly, but they can rise just as quickly... if you follow the tips outlined below. Tip One: Lower Credit Card Balances To calculate your credit score, the bureaus compare the difference between what you have available and what you're actually using. If your credit is at its limit, or even close to that limit, then it's time to start paying off more than just the interest every month. Take some time to consider how you can reduce your spending, then use that money to reduce the principle on your credit. At the most you should have 30% in-use on any given card at any time. Creditors like people who have credit available; it's proof that you're a responsible consumer. Tip Two: Don't Let Old Cards Gather Dust Long-term credit is better-credit; at least as far as your credit score is concerned. If you have older, valid credit accounts gathering dust, break them out and use them! Charge (though no more than the 30% mentioned above) something to that account, then pay it off well within the due-date timeframe. That way, the credit bureaus show activity that makes you look like a well-established and valued consumer as well. Tip Three: Dispute Black Marks Per Federal regulation, each of the three major credit bureaus (Experian, Equifax and TransUnion) are required to provide a free copy of your credit report on request, once a year. Go to a different bureau every four months and request a copy; use it to stay knowledgeable about your credit and your specific circumstances. Go through each report when you receive it and dispute every single black mark on it. Those same regulations allow you to dispute any negative claim on your report. By disputing it, you're forcing the bureau to verify the claim. Because the bureau is selling your information for profit, it becomes the bureau's responsibility to make that verification and ensure that it's correct. Law requires the bureau to verify the disputed claim in a reasonable amount of time: 30 to 45 days. If they don't, they must remove it from your report. As a general rule of thumb, 40% of the disputes made aren't verified within that timeframe. This point is the single most powerful tool in your arsenal against bad credit. Don't hesitate to use it, and use it often! Submit your disputes by certified mail at the busiest times of the year, and you may join that 40%. These tips are just a few of the many options available to you to repair your credit. It takes attention to detail, steadfast determination, and no small amount of patience to make this work, but it can be done. Repairing your credit is your legal right, and something that everyone should do on a regular basis.About the Author: Chane Steiner is the president and founder of AAACreditGuide.com, the <a href="http://aaacreditguide.com">credit repair</a> authority site. He has helped many people repair their credit and get back on their feet. Chane has reviewed and recommends the following <a href="http://top-10-credit-repair.com">credit repair companies</a>.Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/credit-articles/tips-for-credit-repair-607801.html" title="Tips for Credit Repair">Tips for Credit Repair</a>

Need-to-Know Credit Repair Tips

A less-than-perfect credit score is common today. Missing a single payment can drop your score by as much as 100 points! Fortunately, learning credit repair is possible for anyone willing to pick up a few new techniques. It's a painful fact that credit scores slip quickly, but they can rise just as quickly... if you follow the tips outlined below.

Tip One: Lower Credit Card Balances

To calculate your credit score, the bureaus compare the difference between what you have available and what you're actually using. If your credit is at its limit, or even close to that limit, then it's time to start paying off more than just the interest every month. Take some time to consider how you can reduce your spending, then use that money to reduce the principle on your credit. At the most you should have 30% in-use on any given card at any time. Creditors like people who have credit available; it's proof that you're a responsible consumer.

Tip Two: Don't Let Old Cards Gather Dust

Long-term credit is better-credit; at least as far as your credit score is concerned. If you have older, valid credit accounts gathering dust, break them out and use them! Charge (though no more than the 30% mentioned above) something to that account, then pay it off well within the due-date timeframe. That way, the credit bureaus show activity that makes you look like a well-established and valued consumer as well.

Tip Three: Dispute Black Marks

Per Federal regulation, each of the three major credit bureaus (Experian, Equifax and TransUnion) are required to provide a free copy of your credit report on request, once a year. Go to a different bureau every four months and request a copy; use it to stay knowledgeable about your credit and your specific circumstances.

Go through each report when you receive it and dispute every single black mark on it. Those same regulations allow you to dispute any negative claim on your report. By disputing it, you're forcing the bureau to verify the claim. Because the bureau is selling your information for profit, it becomes the bureau's responsibility to make that verification and ensure that it's correct.

Law requires the bureau to verify the disputed claim in a reasonable amount of time: 30 to 45 days. If they don't, they must remove it from your report. As a general rule of thumb, 40% of the disputes made aren't verified within that timeframe. This point is the single most powerful tool in your arsenal against bad credit. Don't hesitate to use it, and use it often! Submit your disputes by certified mail at the busiest times of the year, and you may join that 40%.

These tips are just a few of the many options available to you to repair your credit. It takes attention to detail, steadfast determination, and no small amount of patience to make this work, but it can be done. Repairing your credit is your legal right, and something that everyone should do on a regular basis.

Chane Steiner is the president and founder of AAACreditGuide.com, the credit repair authority site. He has helped many people repair their credit and get back on their feet. Chane has reviewed and recommends the following credit repair companies.

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