ABOUT THE AUTHOR
Dave Udy is a 20 plus year veteran of the
Mortgage business. This booklet was put together by him
for the purpose of assisting his customers in repairing
their credit. This, or a previous version, has been handed
out to hundreds of people for that purpose. Some have used
it to clean up their credit before getting a new loan while
others just to clean up erroneous data that did not affect
their borrowing power.
This simplified step by step process is a distillation from
many sources including government publications, numerous
other credit repair guides and mostly from Daveís experience
with borrowers over the last 20 or so years.
The information is current as of the
date of publication, but the credit bureaus seem to be moving
targets when it comes to their addresses and phone numbers.
All known addresses, phone numbers and e-mail / websites
are listed below. Make sure to confirm the correct address
before mailing in your letters.
P.O. BOX 740256
ATLANTA, GA 30374-0256
P.O. BOX 2002
ALLEN, TX 75002
Attn: N C A C
P.O. BOX 34012
SEND ALL CORRESPONDENCE: CERTIFIED MAIL / RETURN RECEIPT
REMEMBER -- SEND IN A COPY OF YOUR DRIVERS LICENSE & SOC.
SEC. CARD TO VERIFY YOUR SOCIAL SECURITY # AND CURRENT ADDRESS
(If your Drivers License does not have the current address,
send a copy of a current utility bill)
You can use the Web, but I don't recommend it.
TO FIND OUT MORE INFORMATION: VISIT
KNOW YOUR RIGHTS
Credit Reporting Act (FCRA), 15 USC sections 1681 through
1681t, protects you against credit abuse that might result
in an unfair description of your creditworthiness. There
are six basic rights that allow you to successfully erase
the negative marks in your credit report and regain a good
credit status and improve your score.
1- You are allowed to challenge the accuracy of your credit
report at any time.
2- The credit bureau must "reinvestigate" anything you challenge.
3- The credit bureau must reinvestigate the disputed information
within 30 days. As of September 30, 1997, the 30-day period
is a matter of law. The time period begins when the bureau
receives notice of dispute from you the consumer. The only
exception to the 30-day rule is when you send the bureau
additional material within the 30-day period. The bureau
may then extend the deadline a maximum of 15 days.
4- If the credit bureau cannot confirm the adverse information
or finds any error, it must promptly delete that erroneous
information from its files.
5- If the bureau cannot or does not confirm the information
you have challenged within a reasonable time period, it
also must delete that information from your files.
6- If a creditor verifies the information and the bureau
responds in a timely manner, the negative marks must remain
on your record, but, if you maintain that the information
reported is in dispute, you have the right to submit a Consumer
Statement of your view of the problem. The credit bureau
is required by law to attach your explanation to every copy
of the report it sends out. This one is last resort only.
You should resubmit your dispute several times first.
A FEW EASY STEPS TO FOLLOW
your credit report thoroughly.!
2- Note any discrepancies in the data. Watch for incorrect
accounts, extra accounts, wrong names or spellings, extra
or incorrect social security numbers, wrong or incorrect
3- Review all negative items on your report. Are they correct?
The credit rules are in your favor. You have 30 days after
the due date on any bill before it can be reported late.
Check your records. Many creditors report late payments
that are not a full 30 days late and you have the right
to challenge them. Collection accounts get stuck on reports
that should not have been reported or have been paid. Just
because it is there, does not mean it is correct.
4- Call all creditors that have issued negative information
to the credit bureaus. Challenge the data. Work out a deal.
Negotiate with them. Your goal is to get a letter from them
removing the negative item. They may say that they will
send the new information to the bureaus. Thatís great, but
get a copy in writing by mail or fax for your records. Youíll
need it for the next step.
5- Gather all of the corrections, etc.
6- Send a dispute letter, along with a copy of any corrections
you received, to each of the three bureaus. Send them certified
mail with a return receipt. If the creditors in step four
didnít cooperate with you , you still have the right to
challenge the information directly with the bureaus, do
it in your letter. Also remember to dispute any and all
errors that you found in step two.
7- Now wait for the replies. The bureaus have 30 days to
contact the creditors for response. If there is no response,
the disputed items must be deleted from your report. Remember
it is frequently possible to eliminate negative marks simply
by going through this process of disputing these entries.
Since many creditors won't take the time or effort to defend
the negative entry, you can eventually "repair" your credit
through the default of your creditors. Note that if the
credit bureau fails to immediately provide an updated credit
report, free of the disputed entry, you have several recourses:
8- If you are not satisfied with the results, start over.
Keep after them until you are. The law is in your favor.
9- Keeping it clean. A few hints to keep your credit
report in top condition.
a- Each inquiry into your credit costs you points. Do not
apply unless you really need the loan or credit card. Be
very careful when shopping for a car. They will pull credit
when you walk on the lot if they can. Shopping around too
much for the best deal may cost you that deal by dropping
your score. Store cards are the worst at reporting. They
have short billing cycles and high interest rates. Close
b- In order to have good credit you must use credit. No
credit is bad credit. Use your credit cards and pay them
monthly if possible, but always, always, always, at least
pay the minimum each month when due. Even if you can pay
cash for large purchases take the time payments and pay
them off in a couple of months. Be very careful with
the 90 days same as cash deals. If you are one day
late paying them the creditor can report you 90 days late.
(R.C. WILLEY is famous for this one) Watch your credit balances.
If you exceed 80% of the limit, it counts against you. Call
the creditor and get them to increase your limit or transfer
balances or use another card.
c- Mortgages are very important! Mortgages accrue interest
during the month and are due on the 1st day of the following
month which technically makes them late on the second. You
generally have a grace period until the 15th with a 4% or
5% late fee due after that. Mortgages are weighted very
heavy in calculating your credit scores. Be very careful
to make your payments on time or arrange for direct payments
from your bank.
d- Be wary of hospitals, doctors and insurance companies.
They are all know for turning you over for collection at
the drop of a hat. Make certain that your insurance company
is paying these bills or pay them yourself and get reimbursed.
Collection accounts, no matter how unfair, are killers on
your credit report and very hard to have removed.
you again for visiting,