So you’ve had some financial trouble back somewhere in your past. Maybe you have been in extended trouble and you are just now digging your way out of the maze. You might be surprised to learn how quickly you can turn a truly horrible credit score into an acceptable credit score—one worthy to be considered for a VA home loan.
Examine and Negotiate
First of all, it is not uncommon to find inaccurate information on your credit report. The “Big Three” credit bureaus (Equifax, TransUnion, and Experian) make mistakes: like picking up errant information and assigning it to your credit report. So, don’t be timid about contacting them and reporting any discrepancy. If you find an error on your credit report, contact one of the Big Three, report it, and see that it is rectified. The law requires each credit reporting bureau to notify the other credit reporting bureaus with corrected information.
The Fair Credit Reporting Act(FCRA), Fair Credit Billing Act(FCBA), and the Fair Debt Collections Practices Act(FDCPA) afford you the legal right to dispute inaccurate items on your credit reports with the credit bureaus and your individual creditors.
By disputing a questionable negative credit item with the credit bureaus, you are requiring them to perform an investigation to determine whether or not the item should be listed on your credit reports. If the credit bureau cannot verify the accuracy of the item, they must correct the listing or completely delete it from your credit report.
Removing Negative Items
Most consumers never attempt to formally open dialog and work with their creditors to remove the negative items from their credit reports. Were you aware that your creditors have the ability to delete negative items from your credit reports at any time? And, would it surprise you to know that many of them are more than willing to negotiate with you for payment of those debts?
If you will be pleasant, and polite, the most cooperative creditors will often adjust or delete a negative credit listing simply by you making that request. In situations where a non-confrontational approach is insufficient, the various consumer protection acts already cited provide you with tools for forcing creditors and collections agencies to prove the accuracy of the reported accounts.
How Long to Repair Bad Credit?
How long does it take to repair credit? If you are serious about changing things and disciplined enough to follow sound financial principles, you can begin to see real progress in two months. That is not a misprint! In two months you can track noticeable and measurable progress in repairing your bad credit score.
In the next half of this two-part series, I am going to show you some simple yet proven financial principles that will help you restore your financial footing. Keep these sound financial rules and in 4 months you will see significant progress in repairing your bad credit. Understanding how to work with the Big Three and knowing how to resolve credit issues are critical for your success.
The last thing I want to say here is, that for some people, getting legal help on an often complex problem is a piece of the puzzle. Depending on the size and the breadth of your financial trouble, resolution can be a several-step process that requires legal assistance. You should always be very careful paying for these services. Some companies will unfortunately spend your money and do little to resolve your credit problems and improve your score.
Look for the second part of this series and learn the financial principles that will help you recover the financial stability and good credit score that you worried were gone forever.