Bad credit repair takes multiple steps on the part of the consumer, but initially, consumers are usually prompted to review their credit report to search for any errors that may be the result of either mistakes or due to the fact that some creditors may have failed to update their information, which may show that an individual owes on a certain obligation when they may have, in fact, paid that particular debt off. Understandably, consumers who are in a position where they can begin the process of repairing their bad credit score need to make sure that their credit history is in order since, for many, the bad repair process will take time and financial discipline, so if a credit report has errors, this could make the bad credit repair process more difficult and problematic.
Yet, the major credit bureaus, being Equifax, Experian, and TransUnion, can provide consumers with a free copy of their credit report, and this is usually offered once every 12 months, so before a consumer begins the process of repairing their bad credit score, reviewing this report and seeking out any mistakes or simply getting a better idea of the total amount of debts that a consumer owes is where many consumers will start their bad credit repair process. While there are some individuals who may have been subject to identity theft, or again, simple inaccurate information, this review process may put some consumers in a position where they can simply begin implementing practices to repair their score, but others may need to dispute errors before they begin the repair process.
According to the FTC, consumers who find errors and want to correct these problems immediately will often submit a complaint in writing to the credit reporting agencies and, in some cases, provide copies of documentation that may show that they have either paid off a particular debt that is on their credit history and report. Furthermore, the FTC suggests that, “In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request that it be removed or corrected. You may want to enclose a copy of your report with the items in question circled.”
Also, is usually suggested that consumers will contact the creditor to dispute the item as well, in writing and with copies of documentation that will support their dispute over a particular item on their credit history, so that both the credit reporting agencies and creditors will be aware that there has been an error on your credit history that needs their attention. Understandably, there are some items that a consumer cannot get removed from their credit history simply because it is causing a low score, like a bankruptcy or foreclosure, but in cases where a debt may have been paid yet remains on a consumer’s report, this deserves a consumer’s attention before the bad credit repair process begins.
In some instances, this could help the consumer in terms of their credit score, but in other cases, there are those who may see only a small benefit from contesting a particular error, but making sure that a consumer’s credit history is in order, identity theft has not been one of the reasons their credit score has dropped, and all items on their credit report are accurate so that their credit score reflects their true financial position will be all pieces of the puzzle for consumers as they begin the process of establishing better financial habits so that they can build a more positive credit score.