Debt Validations Letters
The Fair Debt Collection Practices Act (FDCPA) gives consumers the right to request that a debt be validated which can be requested with a debt validation letter. Debt validation is different from the verification process that can be done through the credit reporting agencies.
A request to verify a debt simple means the credit reporting agency requests that the creditor verify their records for accurate information. A debt validation requires that the collection agency prove the debt is the consumer’s responsibility and that they have the legal right to collect this debt.
Under the FDCPA, consumers have the right to ask for validity of the debt that the collection agency says is owed. Section 809 of the Fair debt Collection Practices Act gives the consumer the right to ask for debt validation to be sure whether you actually owe the debt to the creditor or not. To request the proof, a debt validation letter needs to be sent to challenge the validity of the alleged debt.
The right to request the debt validation applies to collection agencies not the original creditor. When a collection agency is assigned, or has purchased, the debt, they are not the creditor, they are collection agency and their actions are governed by the FDCPA.
The collection agency needs to present documentation proving the consumer does owe the money. Documentation from the collection agency should include items such as; proof that the collection agency has been assigned the debt from the original creditor or that the collection agency actually owns the debt and account statements from the original creditor that verify the credit agreement between the consumer and the original creditor as well as a payment history if the amount owed is in dispute. Generally, a simple list of the services or products sold that resulted in the debt is insufficient evidence to validate a debt.
The collection agency has to stop the process of debt collection until they are able to validate the debt within the first 30 days of notifying someone of the debt. If the debt collector does not verify the debt within 30 days, it is not allowed to continue collecting the debt. If the creditor or collection agency is not able to provide debt validation, they have to remove the item from the credit report.
Of course, the key for the consumer is that so many collection accounts and records are sloppy and inaccurate and therefore they cannot be properly verified. The validation process can definitely help remove collection accounts that are inaccurate and also remove collection accounts that may be valid but cannot be properly supported or validated by the collection agency.
To get the ball rolling, the consumer needs to send a request letter or debt validation letter to the collection agency asking them to validate the debt. The request for debt validation must be submitted in writing. If the debt is properly validated, send the credit reporting agencies a copy of the debt validation letter along with the return receipts to get the account removed from the credit report and ultimately improve the credit score.
Filing Bankruptcy Cost
The cost of filing bankruptcy has risen since the amendments to federal bankruptcy law were added in 2005. Filing bankruptcy costs can be complicated due to the different fees that may have to be paid. The costs of filing bankruptcy can be quite low for consumers who handle the filing and petition on their own or more expensive if an attorney is involved and the case is complicated with various assets and contracts.
There are many different options for consumers to deal with their debt and budget problems. Bankruptcy is certainly one such option and generally has the greatest impact on debts and credit. Filing bankruptcy costs is just one factor to consider in evaluating credit and debt solutions. The cost of bankruptcy will vary substantially, depending upon the complexity of your case and the type of bankruptcy you file
A recent study of bankruptcy filing costs published in the American Bankruptcy Institute Law Review concluded that the average costs of Chapter 13 bankruptcy cases was 4,077.00 in 2007 and 2008 while the costs of bankruptcy for a Chapter 7 filing costs averaged $1,399.00.
The American Bankruptcy Institute Law Review study considered the costs associated with the process of filing for bankruptcy, including the court filing fees, credit counseling fees, debtor education fees that may be required, attorney fees and expenses as well as trustee fees and expenses.
An estimate of the costs for filing bankruptcy includes:
Filing fee with the court of $299.00 for a Chapter 7 case or a filing fee of $274.00 for a Chapter 13 case.
Hiring a lawyer to prepare the bankruptcy case file and to represent the consumer in court. This cost can be anywhere from a few hundred dollars to a few thousand dollars.
Before you can declare bankruptcy, the court may require that you get credit counseling from an approved counseling organization. The cost of these credit counseling programs will vary from region to region.
When evaluating the cost of filing for bankruptcy, all of the costs should be considered, not just the direct expenses on fees. The other significant costs can be the time involved and the damage to an individual’s credit history and credit score.
Individuals that may find that they cannot obtain new credit after bankruptcy or that the new credit and credit cards after a bankruptcy will have a higher interest rates and fees. Employers are more frequently checking credit reports for new hires as will insurance companies and rent management firms. An individuals credit score will be impacted by a bankruptcy for up to ten years.
Bankruptcy may very well be the best solution for consumer debt trouble, but filing for bankruptcy is a plan of action to help resolve debt issues that should be considered very carefully.
Understanding Pay for Delete Letters
Removing negative information from a credit report is the fastest method to increase an individual’s credit score. One of the procedures available for removing negative or derogatory records from a credit report is using what is referred to as a Pay for Delete Letter.
The pay for delete letter name describes exactly what this document is. A pay for delete letter is sent to the creditor or collector agency asking that they remove the bad payment record from your credit report in return for your settlement or payment of the account. The pay for delete letter or agreement states that you agree to pay off the debt, either in full or you negotiate a settlement amount less than the total amount owed, with the collection company in return for their promise to remove all information on this account from your credit report.
A reasonable question to ask is why the creditor or collection agency would agree to this. First, they don’t always agree. Sometimes the creditor is willing to delete the record in exchange for collecting on the debt, other times they will not. The reason any company in the business of collecting delinquent debts would agree to these terms is they have not been successful in collecting the debt up to this point and they are in the business to collect money.
The pay for delete letter usually has to be sent to the original creditor or the collection agency to remove the outstanding debt since they will have the authority or ability to remove the listing from an individual’s credit report.
If the creditor agrees to pay for deletion agreement, the negative listing gets removed from your credit report once the debt gets repaid in full
An important note is that any time a consumer is going to request a pay for delete agreement or send the pay for delete letter, they should first request that the debt is in fact a legitimate debt that is their responsibility. For consumers new to the credit score help process, this seems like a waste of time since they often know the debt is theirs. The key is that the information is often not accurate. It may be inaccurate by just a slim margin, but this inaccuracy can be enough to ask that the credit reporting agency remove the debt, period.
If the creditor is not able to provide you with debt validation, he must remove the item from your credit report. A debt validation letter can be used to demand that a collection agency or creditor verify that the debt in question is in fact your account and that the amount of money owed or recorded in the credit report is accurate. The debt validation letter will, at a minimum, verify the actual amount someone is required to pay on an outstanding debt.
Once a debt gets validated, the pay for delete letter can be sent to try and remove the account records from your credit report which in turn should boost your credit score as well as get the creditor to possibly accept less money that the total amount owed.
Everything should be in writing. Not making the creditor verify the debt and not trying to get them to accept a pay for delete letter is simply skipping some of the quickest and easiest methods to clear up a credit report and improve a credit score. The information obtained won’t always be in your favor but, the process cost next to nothing and has worked for numerous individuals who have had credit problems and need credit score help.
Pay For Delete Letters to Remove Delinquent Accounts
A pay for delete letter is a useful tool to try to eliminate a delinquent credit item from your credit report. A pay for delete letter is a means used to arrange for a settlement on a severely delinquent account in which the sender is requesting that the creditor remove the delinquent record in return for paying the account off. The payoff amount can be the full amount or an offer to settle for a lesser amount.
The letter can be used in a variety of situations were the debtor wants to negotiate a payment in exchange for having the tradeline or account history being removed from their credit history. Once a delinquent record is removed, an individual’s credit score should improve almost immediately.
The object of the letter is to get the collection agency or creditor to accept payment in return for an agreement in writing that they will no longer report the debt to the credit reporting agencies.
The collection agency or the original creditor of a bad debt doesn’t have to accept or respond to a pay for delete letter but of they don’t, the individual requesting the settlement and deletion is not in any worse of a position.
The key element in charged off accounts is that a paid charge off has the same impact on a credit score as an unpaid one. Therefore, it behooves someone that has an unpaid delinquent account to try and get the creditor to remove the record in return for payment. Not all creditors will agree to remove a credit history on a delinquent account, however since the account has most likely not been paid in some time, unless the bank, credit card company or medical service provider agrees to delete, there is no incentive for the debtor to pay the account.
As a general rule, these letters are best used with the original creditor and not the collection company. Usually, the collection company cannot make the decision on behalf of the original creditor so they cannot delete the accounts from your record.
Only deal with the creditor that is reporting the debt. If a collection company is calling for debt to another company but isn’t reporting to the credit reporting agencies, ignore them and work with the original creditor instead.
Always be sure to get something in writing that says that the creditor will no longer report the debt to the credit reporting agencies and therefore get a boost in your credit score.
The following is a pay for delete letter as an examples are only that. The letter can be altered to match your specific situation.
Creditor or Collection Agency
1212 Maple St
City, State Zip
Collection Account for Original Creditor Account #
To Whom It May Concern:
This letter is to inform you that the validity of this debt is disputed. In order to compromise, I am willing to pay this account in the amount of $_____ if you agree to delete this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.
If you agree to the terms and accept this agreement, certified funds for the settlement amount of $_____ will be sent in exchange for full deletion of all references regarding this account from my credit files and full satisfaction of the debt. Since I am sending certified funds for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.
If you agree to the above terms, please prepare a letter on your company letterhead agreeing to the same terms as the above settlement offer. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.
Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.
Please address all correspondence regarding this account to:
Name
123 Any Street
City, State Zip
This letter can be used and tailored in any situation were you want to negotiate a payment for a tradeline in your credit report being removed. The mention of the term dispute in the letter is protection so as to not willing agree that the terms of the debt are in fact accurate and your full responsibility. A creditor could turn around and use any admission of the actual debt in court if they decided to take legal action.
There is no standard amount to offer the creditor to remove the debt, but there is no reason to offer the full amount initially and offer 50% of the amount owed instead.
Your Credit Score May be Too Low
Before the economy took a turn for the worse and credit became harder to obtain, good credit and a good credit score was a fairly well established number or close range of numbers. Now when it comes to the topic of a good credit score, that well defined range of credit scores that creditors and consumers would agree on is elusive. Tougher credit and greater credit awareness has elevated those numbers and what was once a good number is now reduced to a fair or poor credit score.
A wide range of credit scores will still be good enough for most consumers to obtain a credit card or obtain a cell phone or avoid problems with an insurance contract but scores are certainly higher now for consumers that want to save money with lower interest rates as well as obtain access to credit when they need it.
Credit scores generally range between the low 300’s and the mid 800’s. In between these numbers, credit evaluators look for different ranges of credit risk. Credit scores are going to directly affect how much money an individual can borrow as well as how much it will cost and the low barrier to receive the best rate and terns has risen dramatically.
In 2002 a number of articles were written extolling the value of a credit score that was just above 600. Businessweek in Nov 25, 2002 wrote “…a credit score under 620, generally the cutoff for a prime-rate loan. “ The prime rate is the interest rate banks offer their most creditworthy customers. Bankrate.com in Dec. 2002 stated that “As a general rule, those with a score above 650 will receive the lowest interest rate loans.”
Jump ahead to June 2010 and one of the largest bank mortgage lenders in the U.S states in their mortgage marketing material that the mortgage rate will increase for all borrowers that have a credit score below 720. In fact the costs for the home loan increase for every 20 points the score drops below 720 to the point where a credit score under 620 is considered non-traditional.
A score of 600 is now clearly considered a bad credit score. A score above 720 is now normally considered a good credit risk, while a score under 660 is considered a high risk. More and more Americans are experiencing the consequences of low credit scores and bad credit first-hand as the standards for good credit has risen.
With the value of a good credit score rising it is becoming increasingly imperative that consumers evaluate their credit history and start fixing and improving their credit profile. For most consumers, working on a good credit score starts with obtaining a copy of their credit report to determine any weak spots in their credit history.
Improving or fixing a credit score often requires consumers to work on any erroneous information or outdated information in their credit report including items such as outstanding judgments, bad credit history items, and any other derogatory remarks in their credit record. It may also be prudent to work on building a good credit history going forward while fixing previous credit problems.
The Difference Between a Credit Report and Credit Score
Credit reports and credit scores are often misunderstood. Understanding these products can be confusing especially when consumers hear about how important credit scores are combined with the intense marketing of credit scores and credit report services.
Credit score and credit reports are closely related yet completely different products. A credit report is a list of all of credit information, public record information, and identification information that the credit reporting agencies have on file under an individual’s name. A credit score is a numerical summary of the information that is present in a credit report.
Credit reporting agencies collect and maintain records of an individuals credit records that are supplied by credit card companies, banks, mortgage companies, and other lending institutions. The information on credit accounts that are supplied to the credit reporting agencies by the creditors including the amount of money borrowed, payment records and additional data is used to create a credit report. There are three primary credit reporting agencies in the U.S. Equifax, Experian, and TransUnion.
The information in a credit report provided by the creditors is then used to calculate a credit score. The credit score is a three digit number that is used to determine the credit risk of a borrower for creditors and businesses assessing the financial risks of potential customers.
All individuals are entitled to at least one free copy of their credit report from the three big credit reporting agencies in the U.S. annually. Credit scores do not come with the free credit reports that are required to be provided to consumers by law, credit scores are not free.
The credit score that is calculated based on the information in a credit report may be different depending on the credit reporting agency used to determine the score as well as the type of credit score.
The most widely known type of credit score is the FICO Score. FICO Scores are the most common score used by financial institutions but there are many non-FICO credit scores available as well.
Individual credit reports from the three big credit reporting agencies are usually very similar, but they are not identical. Since the information in each credit report is somewhat different, the three credit scores from the credit reporting agencies will also be different.
Data in a credit report changes periodically, depending on how many credit accounts a an individual may have, the credit data in a credit report may change several times in a month. Since the credit score is based on the data in a credit report, a credit score will fluctuate over time and can change as often as the data in the report changes. The more accounts an individual has the more likely their score is to fluctuate as the data in their report changes when the creditors send updated data regarding an account to the credit report agencies.
Credit and Credit Scores after Bankruptcy
Filing bankruptcy is a series decision that impacts an individual’s credit and credit score for quite some time. Bankruptcy doesn’t have to shut off credit access altogether nor does filing bankruptcy have to be significant detriment for financial success. There are certainly numerous cases of individuals that have filed for bankruptcy and rebounded stronger and gone on to create significant wealth.
A bankruptcy is always one of the biggest negative factors that impact a credit score. How much of an impact it will have on an individual score will depend on the entire credit history and data in the credit report. As time passes, the negative impact of the bankruptcy decreases and the credit score will improve. A credit score can improve significantly faster with a little help and work.
Consumers who file for bankruptcy, file for a variety of reasons ranging from job loss, divorce, medical costs to poor credit decisions. In general, the reason for the bankruptcy doesn’t matter to future lenders and or the credit score calculation. If an individual filed for bankruptcy protection regarding only medical services this would have somewhat of a slighter impact than a bankruptcy that affects all credit. But bankruptcies that only include medial costs are rare and the credit score is going to take a big hit do to the bankruptcy record in most any situation.
The impact to an individual’s scores regarding future credit prospects are the same since most all loan decisions no longer look at qualitative factors such as why an individuals credit is poor rather banks and lenders just numbers such as the credit score and debt ratios, etc…
A credit score takes a big hit from the records of the bankruptcy on the credit report; the impact is different for all cases since the credit history of the individual is different before the bankruptcy. The credit reports of individuals that file bankruptcy often look bad with numerous late payments, collections, and judgments. The credit scores in these cases are already hammered pretty hard before any bankruptcy filing hits the credit report.
After a bankruptcy has been filed, the sooner the individual begins reestablishing credit in good standing, the sooner the credit score will rebound.
For those consumers that have credit available after the bankruptcy, they should keep that credit open. If an individual was able to keep a credit card that was not included in the bankruptcy because there was no balance on it, keeping the line of credit on the credit card open will help rebuild the credit score.
A good start for new credit is to obtain a secured credit card. In may help to even obtain more than one card and continually make monthly payments on time without running up new long term debt. As more time goes by after the bankruptcy the impact of the bankruptcy on the credit score lessens, and it may be possible to apply for a traditional credit card without security.
In general, the derogatory account information reported on a credit report has the most adverse affect on a credit score for the first 24 months after it is recorded. Once an individual is discharged from bankruptcy, they can apply and open new credit whether it’s a bank credit card, retail charge card, gas card and loan.
The nest step after establishing new credit, whether it be on existing accounts or secured credit cards, is to credit any inaccuracies in the credit report that may be holding the credit score down. If an individual finds inaccurate records on accounts that should be removed due to the dates or balances or amount owed, they have the right to dispute these errors. A dispute letter should be sent to each of the credit reporting agencies to correct the errors at Equifax, Experian, and TransUnion no matter how small the error is.
For each of the derogatory records or accounts on a credit report such as collection accounts or judgments or late payments, it is always helpful to check the dates and balances to see if either the amount is wrong on these accounts or to see if the account is past the deadline to remain in the report. Credit scores often have the greatest improvements when expired, derogatory data is removed or inaccurate derogatory data is removed. A key element regarding inaccurate balances is that if the creditor can not validate the amount to the credit reporting agency it has to be removed.
As a final note, always be extra careful not to make any late payments, using new credit responsibly, and don’t apply for too much credit without a purpose. Overtime a credit score will improve as new positive records are posted to the credit report.
The information about bankruptcy is for educational purposes only and is believed to be accurate but is not complete. Freecreditscorehelp.com does not offer legal advice. It is strongly recommended that individuals seek professional legal advice in the event of a bankruptcy filing.
Drawbacks of Credit Cards and Credit Use
One of the primary reasons consumers run into credit issues and subsequently suffer with a low credit score is too much credit card debt. Excessive and unmanageable credit card debt not only causes credit and credit score problems but also is a primary cause of personal bankruptcy filings.
The use of credit usually involves spending money that is not readily available. Obtaining a home mortgage is one form of credit in which borrowers use the money extended with the credit to buy a house. Most individuals would not have the cash available to buy a home without credit being extended with a mortgage. Historically, obtaining a mortgage to buy a house has been a sound use of credit since the borrowed funds were used to purchase and asset, and that asset usually appreciates in value while the debt obtained to buy the assets is reduced in value over time with monthly mortgage payments.
Credit card debt is also used to make purchases with money not readily available, similar to mortgage loan used to buy a house, but credit card debt is usually incurred to purchase disposable items not assets. Credit card purchases are rarely used to buy an asset that is going to appreciate rather they are used for toys, trips, TVs and related consumption goods.
Since consumers can spend more than they currently have with credit, they can easily spend more than they can afford. This is true when credit is used to buy a home but is especially true or more common when credit cards are used. The primary reason is that access to credit cards has been relatively easy and accessible allowing more consumers to lose control over this type of credit.
With credit card use, as the credit card balance increases with purchases and other transactions, the minimum monthly payments also increase, and soon many credit card users find themselves in over their head. This problem is exacerbated if interest rates on the credit card are high or have become high due to late payments and the credit card fees are accumulating. Unmanageable credit card monthly payments tens to lead to late payments and a deteriorating credit history.
Credit card debt generally carries a high interest rate. When someone buys a home, the interest rate on the loan is often 10% lower than the rate on a credit card. Since credit cards are so prevalent, very few consumers pay attention to just how expensive credit card debt is.
Due to these high interest rates, the minimum monthly payment on the total balance due may cover little more than the monthly interest charge. Consequently, the minimum payment may only minimally decrease what is already owed. The low minimum payments, high interest rates and ease of access frequently adds up to trouble for many consumers who end up struggling to pay off the debt they have accumulated to buy everyday items. The end result is a poor credit score, added stress and a decreased standard of living.
Many credit card holders try to manage the high interest rates by accepting promotional credit card offers to transfer credit card balances or open new credit cards with a lower rate. Often these moves simply exacerbate the debt load problem by adding new debt without paying off the accumulated credit card debt.
Some of the reason that new low rate credit cards and balance transfers fail to help is that the low rate offers may be offered on balance transfers with new purchases and cash advances are billed at a higher interest rate and the charges offset the savings you would otherwise enjoy. There are also limitations on the new low rates that are frequently ignored by the card holder as well as the problem that many credit card holders fail to stop using the older credit cards. The result again is higher monthly payment that can lead to late payments, a poor credit history and a low credit score.
To minimize the chances of being a victim of too much credit card debt and a low credit score as result of these burdensome payments, minimize or eliminate credit card use. If the funds are not available simply forgo the purchase. The headache of trying to pay off high rate debt is hardly worth the joy of a new TV, dinner out or other immediate consumption items. Low credit scores and poor credit histories start with too much credit card debt that started with just a little credit card debt.
Watch for Debt Collection Scams
Debt collection scams can cost consumers financially as well as cost time and aggravation. Debt collection scams and errors occur when the information about a consumer’s debt is recorded incorrectly. Errors regarding debts and debt collections may include minor issues such as the wrong amount recorded in the credit report or major issues such as the wrong person being attributed to the bad debt.
Errors often occur when a bad debt is released or sold from the original creditor to a collection company. These bad debt errors can cost an individual money with unnecessary payments as well as a poor credit history and bad credit score.
Unfortunately, in some egregious cases the debt collection error is due to willful acts made by the collection agency. Collection agencies that end up doing more damage to an individual credit history and credit score by not recording payments properly or displaying a debt as not paid when it should be and other related problems that are caused by willful neglect or intentional deceit.
An example of improper acts conducted by collection agencies was brought to light by a settlement between the FTC and large collection agency. The FTC news release regarding this settlement simply stated “Claimed Debts Were Owed Despite Consumers’ Disputes”
In the press release by the FTC the complaint stated that a nationwide debt collector has agreed to pay a fine of more than $1 million to settle charges that it violated federal law by inaccurately reporting credit information and pressing consumers to pay debts they often did not owe. The FTC charged a company called Credit Bureau Collection Services with these actions and of violating the FTC Act and the Fair Debt Collection Practices Act.
The company was charged with violating the Fair Credit Reporting Act by reporting information to credit reporting agencies that consumers had proved was inaccurate, failing to inform the credit reporting agencies that consumers had disputed the debts, and failing to investigate the accounts after receiving a notice of dispute from a credit reporting agency.
The Federal Trade Commission is a federal government agency authorized to prevent fraudulent, deceptive, and unfair business practices and includes practices in credit reporting and debt collections. Unfortunately, by the time the FTC addresses an issue there may be numerous consumers who have already experienced damaging results by the actions of others. Knowing the laws and rules regarding credit reports, credits cores and debt collections can help save someone from being the victim of unlawful practices and abuses.
Managing Money and Credit
Learning how to manage money the right way is an important step for individuals to take toward controlling their financial position. Understanding where your money is coming from and where it’s going to, not only helps to manage a household budget but can make sure that an individual’s credit remains good as well as helping to improve credit and credit scores that are already weak.
One of the first steps toward financial control and sound credit management is to calculate your net income. In order to improve credit and hence improve credit scores, the first step has to be knowing all of your sources of income after deductions, like income taxes and 401k, are taken into consideration. This net figure ultimately determines how much money can be spent each month on living expenses and debt repayment.
The next step is to make sure all accounts are current or have current information. Along with gathering and managing all current accounts, balancing the checkbook is a critical component in money management since it provides the information on exactly how much money is currently available to save or spend. Prepare statements on all bills and debt and make sure the checkbook is balanced and up to date.
Create a personal budget is next logical step to managing money and credit. A budget is an important tool to control spending, help manage debt and improve savings. A budget can be a fundamental starting point to help you achieve your financial goals. A budget is also a good way to understand what is important to you. Items of consumption such as new toys and cars and furniture are nice but hardly important to our lives and relationships. Determine what’s important in your life including credit, debt and relationships with a budget.
Once a budget is in place it times to take a close look at credit card debt and minimize the use of credit cards. Always use your credit cards wisely. The credit card rates on outstanding balances add up quickly and buying goods that cannot be paid for with current income is only going to make money management harder and stress levels higher. Credit card debt is an easy trap to fall into. The best way to avoid this trap is to avoid using credit cards altogether.
Now its time to pay down any outstanding debt. For those consumers that have credit card debt or other debts, one of the best approaches is to pay the maximum amount of funds available to the highest interest rate debts first and the minimum on lower interest debts to pay debts faster. Call the credit card companies to make better payment arrangement and lower the interest rate to help solve your debt burden.
Now, establish a savings plan. Try to set up an automatic withdrawal plan for forced savings, contribute to a 401K or deposit a portion of your monthly income into some kind of savings account. Even a small amount will add up when it is deposited monthly.
Review and understand your credit report. Obtain a credit report and become acquainted with your credit history. Annualcreditreport.com is the government mandated web site that lets consumers get access to one credit report from each of the three major credit reporting agencies annually. In order to improve your credit and improve your credit score, it is important to know where it stands presently. Repairing damaged credit can be easier than many people believe. But it does require work and no matter how bad the starting point is, you need to see the credit report and credit history to know where to start.
If the credit report shows late payments, high balances and credit lines, or bankruptcies or other collection activities, this will negatively impact an individual’s ability to get additional credit, housing, insurance and many other services that involve credit. Start now with good money management skills and fix as much of the credit report as possible to increase the credit score and credit profile.