Repair Credit
TweetWhy Is It Important To Repair Credit?
Why does the almighty credit report have so much power and influence? Many people erroneously think that the credit bureaus, who gather and maintain our credit information, are government entities and what they say goes. And that it isn't possible to repair credit. But, credit bureaus are nothing more than for-profit private companies that make a killing off you and I. At the very least, they should be sure the information they list is accurate. But, they don't. In fact, over 79% of all credit reports contain errors, some serious enough to prevent you from getting credit.
It is important to repair credit for the obvious financial reasons. But there are other reasons it is important to repair credit. A poor credit report could not only prevent you from getting a loan, but possibly a job, insurance or an apartment as well.
It is your legal right to repair credit. The FCRA (Fair Credit Reporting Act) and the FDCPA (Fair Debts Collections Practices Act) protect your rights and hold creditors and credit bureaus legally responsible for all claims they make against you. The FCRA states that all information on a credit report must be accurate, timely, and, verifiable in order for it to remain on your report. But, credit bureaus do not verify information before placing it on your report. This alone could result in 40% of your credit report being inaccurate in one way or another. Good thing consumers can repair credit.
Another reason it is important to repair credit is the vast amount mistakes contained in credit files. Credit bureaus have to keep track of millions of credit records. There are also hundreds of federal laws they have to follow. As a result mistakes and violations are all too common. It's inevitable that most consumers will have to repair credit at some point.
If your credit report contains an error or you can detect a violation, bring this to the bureaus attention through a dispute letter. Send it certified mail, return receipt requested. The bureaus are given 30 days to provide documented evidence to verify the dispute. Non-compliance is a violation and the item must be removed.
There is a lot you can do to repair credit for your own benefit. But the efforts you take to repair credit extend beyond your personal finances. It also sends a collective message to the bureaus that we aren't going to sit by and let them get away with violations while they make billions off of us. We are simply requiring them to uphold the law and will hold them responsible for violating any aspect of federal law.
