How to repair my credit score to buy a house

Credit score report card

In the United States, credit is a way of life. Bad credit can prevent you from financing a home, obtaining a credit card and possibly deny you a job. Because of all these reasons, it is important to maintain a good credit rating and credit score. If you discover legitimate errors on your credit report, you have the right under the Fair Credit Reporting Law to challenge any credit entries that you believe are inaccurate.

The dispute procedure to repair your credit is relatively simple. Here are the steps to contest legitimate errors on your credit report:

Inform the credit bureaus, in a letter, what information you believe is inaccurate.  Provide the credit agencies with your full name and address. Identify the item(s) that you believe are inaccurate in your dispute letter. Explain why you are disputing the information and request that the negative credit entries be corrected or removed. Send a copy of your credit report and circle or highlight the disputed items. Send your dispute letter and any supporting information by certified mail. Make copies of all information that you send to the credit agencies

By law, the credit reporting companies are required to investigate your disputed item(s) within 30 days. The credit agencies also must provide the creditor(s) with all the relevant data you provide about the inaccuracy of the credit listing. After the creditor receives notice of a dispute from the credit reporting company, the creditor must investigate your dispute, and report to the credit reporting company the result of their investigation. If the creditor finds that the disputed information is inaccurate, the creditor is required to notify all three of the largest credit reporting companies to correct the consumer’s information in their file.

Is your dispute legitimate?

If not, the law allows the credit reporting agencies to ignore frivolous claims.

The credit bureau must provide you, in writing, the result of the investigation and provide you with a free copy of your report if your dispute results in a change.

If the investigation does not resolve your dispute with the creditor, you can ask that a 100 word statement be included on your on your reports.

Sounds simple right?

In reality, you may find that the credit reporting companies are not the independent arbiter and advocate that you think they are. You may find that the credit bureaus will comply with the law and forward your dispute claim to the creditor(s). The creditor(s) usually answers your dispute with a quick and certain answer that the derogative credit is accurate and that the negative credit listings should remain on your credit report. If you firmly believe that you are in the right, you should consider professional representation to correct any inaccuracy.