Selling Timeshares

If you have ever wondered about how to fix credit, you will want to read on.  Specifically, we will be discussing the most frequently asked questions that people have about fixing credit.  After reading this article, you should be ready to put a plan of action in place to improve credit.

What is credit report disputing and how can it help me fix my credit?

Credit report disputing is your right under the Fair Credit Reporting Act.  Your credit bureau is a collection of unverified information unless you get involved and dispute items that you believe to be inaccurate.  If you believe an item, or any part of the way an item is reporting, is inaccurate, you may dispute it with each of the three major credit bureaus.  Once you have done this, the credit bureaus will contact the creditors who will then have to verify the account.  If they fail to respond in time or are not able to verify the account, the credit bureaus must remove it from your credit file.

If I have old collection accounts, is paying them off the best thing I can do?

Absolutely not!  Paying off an old collection will actually lower your credit score significantly.  This is because recent activity has a much greater impact on your credit history than older accounts. By paying off an account, you renew the date of last activity on the account so that any negative history is impacting you more than it was before.  What you want to do is call the creditor and see if you can arrange a pay for delete.  You want to get a letter from them stating that they will delete all negative history in exchange for payment in full.  Make sure you get the letter before you make a payment!

I have an account that was place with a collection agency.  I disputed the account but it came back as verified.  Is there anything else I can do?

The next step you should take is the debt validation procedure.  This is where you force the collection agency to prove to you that you owe them the money they claim you do.  To do this, you will write a letter to them requesting that they provide you with a copy of your original contract, a copy of the contract between them and the original creditor showing that they own the debt, and an accounting of the account.  Very often, collection agencies do not own the debt or cannot prove that you owe them the debt.  If this is the case, they must remove the account from your credit history.