AAACreditGuide helps you learn how to repair your credit, which can lead to substantial savings in interest payment. It starts with the basics of credit repair, with information on how to obtain your credit reports from the different credit reporting agencies and get a free Credit report from each of the agencies once a year. It also provides tips on how to analyze your credit reports and rebuild your credit
To remove bad credit from your credit report, you should know how to dispute bad credit. This involves sending credit repair letters to remove charge offs, collections and late payments. Public records also have to be corrected to remove bankruptcies, foreclosures, repossessions and judgments.
To repair your credit, you must first get your credit reports from each of the 3 major credit reporting agencies. These agencies will provide a free copy each, once a year. After obtaining a copy of the credit report, verify each item listed carefully. More than three fourth of the credit reports contain mistakes. You can and should dispute every error in the credit report, however minor it may be. If the credit reporting agency cannot provide information to support the disputed item in the credit report, they will have to delete it. Since the credit reporting agencies receive thousands of disputes every day, they are usually not able to provide evidence and delete the item.
When the chances of recovering the debt money are very low, creditors call it a charge off. Though the borrower still owes the money, the creditor has exhausted all conventional means of getting the money back and the case is handed over to the collection agencies, whose debt collectors take over. If the charge offs in your credit report from any of the agencies, your ability to obtain loans and other forms of credit from various banks and financial institutions will be adversely affected. Removing charge offs from a credit report is an important aspect of credit repair.