There are so many mixed messages about improving your credit score rating on the internet; it’s hard to know what the real truth is. Some recommend using credit repair companies, others say you can do it yourself. There is a school of thought that recommends avoiding credit repair companies at all costs, that they use questionable and possibly illegal methods to lower your score. On the other hand, there are people who have had their credit report improved by such companies, but what price did they pay? In search of the answer, we went to financial experts Forbes to find what they have to say regarding the truth about improving your credit score rating.
What Forbes Says About Improving your Credit Score Rating
Forbes is one of America’s most trusted financial experts and institutions. It is very interesting that they make the comment that “Even if you’ve done everything right, your credit could still be in trouble”. The reason for this, says the Forbes website is that 70% of credit reports have errors in them! That is an astounding figure, and all the motivation anyone needs to check their credit score rating. You could be thinking you have a good score, and through no fault of your own, actually have a bad one.
Forbes recommends getting your free credit score rating through the website created by the three major credit bureaus – Experian, TransUnion, and Equifax – www.annualcreditreport.com. At this site you get free and immediate access to your credit report from each of these organizations. Other websites that offer free reports allow you access to only one of those organizations, usually Experian, and even if that report is clear, you may have errors on the reports from the other two. You also may have to pay a monthly subscription fee if you fail to unsubscribe. If you forget to pay, it could actually further damage your credit score rating.
A top tip that Forbes shares is to not reactivate debts that are over seven years old by trying to pay them off. If a debt is more than seven years old, it shouldn’t even be on your report. You are thus entitled to have it removed, and you are not obligated to pay it. This is the sort of information that is critical to improving your credit score rating. It could also make the difference between you receiving credit or not. You might even get into legal trouble if you revive a debt that is over the seven year statute of limitations. By reviving the debt, you also restore the seven year time period, enabling the debtor to file suit against you.
So Should You Use a Credit Repair Company to Improve your Credit Score Rating?
There are many fraudulent “credit repair” companies just waiting in the wings for their next victim. Forbes says, “Even a legitimate credit repair service can do absolutely nothing for you that you can’t do for yourself.” Many of these companies may even use tactics that could get you into legal trouble. It’s quite simple to fix your credit history on your own. Simply order a report from Experian, Trans Union and Equifax (order all 3 as they may contain different errors) and look for mistakes.
Once you find a mistake, make a note of it, and look for documentation to back up your claim. After going through your reports, noting the errors and accumulating your verifying documentation, you need to write a simple letter to whichever organization has a report on you containing mistakes, and make sure to include your verifying documentation. Once the mistake is verified, it will be removed from your report, restoring your credit score rating to the level it should be.
Ethel Wilson is a financial and credit specialist with 12 years experience in the banking, credit scores, and financial industry. She has advised countless clients on how to improve their credit score rating. She shares the best of her credit score information as a contributor and editor of http://www.creditscoreresource.com