How Can I Repair My Credit Rating?

Anybody who has ever bought a car or a house knows how important it is to have a good credit rating, but do you know how that rating is figured?  It's really nothing more than the result of a mathematical formula taking into account several factors, including your record of paying bills on time and how much credit you carry. 

Unfortunately for many people, their credit ratings have been hurt, and if you are one of them, you might be asking yourself, “How can I repair my credit rating?”  There are lots of ways: some are easy, some are not, but anything that helps will get you further on the path toward good credit.  The easiest  thing to do is get a copy of your credit report and check it for accuracy.  This report is easy to get and free once a year in most states. 

There may be inaccuracies in your report, and it is up to you to correct them.  Once you see your credit report, let the agency know (in writing) exactly which part of your report you wish to dispute.  Explain “I am trying to repair my credit rating, and I dispute the following items”. Support your claims with copies of relevant paperwork.  Give them all your information, including name and address, and explain to them why you think the report is wrong.  They will investigate your claim and do something about it within 30 days.  They let the creditor in question know about the dispute, and the creditor investigates the reason for the inaccurate reporting.  If the information is actually inaccurate, the creditor must let all three agencies know of the mistake.

Once the mistake is changed, the agency is required to provide you with a free copy of your credit report along with an explanation of the changes.  Of course, this copy of your credit report is free of charge, and the bad information cannot reappear unless it is later found to be true. 

If that sounds like everyone is working for you, you're right.  To top all that off, you can request that the agency send the new report out to anyone that has requested it in the last six months.  This means that anyone you have applied for credit with and failed to obtain it will have a better look at your overall credit worthiness, perhaps earning you that coveted house or car you were going for in the first place. 

Even if the inaccuracies aren't resolved to your satisfaction, you have the option to include the dispute with any future credit applications so that possible creditors know that what the are getting may not be completely correct.  This may help, or it may not, but it certainly can't hurt your chances.  IF you've been wondering - “How can I repair my credit rating?” - you now have the information you need to get started.

For sure, the easiest way to improve your chances at getting a car loan or mortgage is to make sure your credit rating is complete and accurate.  Armed with the most up to date and accurate information, you present yourself in the light you want creditors to see, instead of being frustrated at every turn.