Hi Jerry,
The most reputable source for fixing your credit is...you! Contrary
to claims made by "credit repair" comanies, there is no fast, "magic
fix" for credit problems. Really and truly, you're going to be able
to handle it more effectively than any of these services can *and* it
won't cost you much more than a little postage. Since you have the
money to get things paid off, and your biggest problem seems to be
finding the correct place to send it, let's get you untangled so you
can pay off your debts and get your credit back on track. All it will
require is a little patience.
I promise, you won't get ripped off this way, either! ;)
First, get copies of your credit report from all three credit
reporting agencies. Make several copies of each, then sit down with
one copy of each, a package of sticky notes, and a highlighter. Go
over each report carefully, and make note of any inaccuracies with
your highlighter - for instance, if you've already paid off an account
and it's still listing as open, circle it and write why it's incorrect
on a sticky note. Stick that note on that entry - you'll need this
information to dispute any inaccuracies, which I'll also explain how
to do.
Nest, make note of debts that you do owe. Contact information for
each creditor is typically listed on your credit report. (If it
isn't, you can write to the credit reporting agency to obtain it.
They are required by law to give you at least a mailing address.)
Contact each creditor immediately *in writing* to make arrangements to
pay the debts, and request that the creditors report your account as
"paid as agreed" while you're paying it off. Most creditors are happy
to do this as long as you stick to the arrangements you make with
them.
*Get the arrangements in writing!* When you send in your final
payment, enclose a letter referring to the agreement that the creditor
report your account as "paid as agreed", and ask them for written
confirmation that they have done so. Do this with *every* outstanding
account you have, and be certain to get copies of your credit reports
a few months later to confirm that the companies have stuck to the
agreement. If they haven't, dispute the items with the reporting
agency to get the information corrected.
All you need to do to get started is get your credit reports. If
you've been denied credit in the past 60 days because of information
found on a credit report, you are eligible for a free copy of your
report from the reporting agency noted on your denial letter.
Otherwise, a report from each company is about $9:
Equifax
P.O. Box 740256
Atlanta, GA 30374-0256
https://www.ai.equifax.com/ai/
TransUnion LLC
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
http://www.transunion.com/Personal/PersonalSolutions.jsp
Experian
P.O. Box 2002
Allen, TX 75013
1-888-397-3742
http://www.experian.com/consumer/index.html#
If you find any inaccuracies, compose a letter to each agency
explaining which information is incorrect, and ask them to either
verify the information or delete the listing. Enclose a copy of the
report with the mistake circled, highlighted or otherwise clearly
indicated.
Also include in your request:
* First, middle, and last name (including Jr., Sr., III)
* Current address
* Previous addresses in the past two years, if any
* Social Security number
* Date of birth
* Current employer
* Phone number
* Signature
You might also find the following resources useful:
Building A Better Credit Record (Includes sample dispute letter)
http://www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm
Credit Repair: Self-Help May Be Best
http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm
Erasing Bad Credit - Audio Presentation from the FTC (Requires
RealPlayer)
http://www.streampipe.com/ram/ftc/call_for_action/erase_bad_credit.ram
Credit and Your Consumer Rights
http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm
NOLO Law Centers has straightforward, sensible information about
repairing your own credit:
"Q: What can I do to rebuild my credit?
A: After you've cleaned up your credit report, the key to rebuilding
credit is to get positive information into your record. Here are two
suggestions:
* If your credit report is missing accounts you pay on time, send the
credit bureaus a recent account statement and copies of canceled
checks showing your payment history. Ask that these be added to your
report. The credit bureau doesn't have to, but often will.
* Creditors like to see evidence of stability, so if any of the
following information is not in your report, send it to the bureaus
and ask that it be added: your current employment, your previous
employment (especially if you've been at your current job fewer than
two years), your current residence, your telephone number (especially
if it's unlisted), your date of birth and your checking account
number. Again, the credit bureau doesn't have to add these, but often
will."
"Q: I've been told that I need to use credit to rebuild my credit. Is
this true?
A: Yes. The one type of positive information creditors like to see in
credit reports is credit payment history. If you have a credit card,
use it every month. Make small purchases and pay them off to avoid
interest charges. If you don't have a credit card, apply for one. If
your application is rejected, try to find a cosigner or apply for a
secured card -- where you deposit some money into a savings account
and then get a credit card with a line of credit around the amount you
deposited."
Rebuilding Credit FAQ
http://www.nolopress.com/encyclopedia/articles/dc/dc21.html
I hope you find this answer helpful! If you need further assistance,
just ask for clarification, and I'll be glad to help!
Good luck, Jerry. I've been in your position (actually, much, much
worse), and I got out in this manner. It's such a relief to get
everything back on track!
-- Missy
Search terms: [ rebuild credit ], several bookmarked resources and
personal experience I would rather not have had! |
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