If you have a poor credit score, it can have a serious impact on your life. Poor credit can make it difficult to secure home, business and car loans, impact whether you're approved for rental applications, and in some cases it can even impact your employment. Therefore, it's crucial that you take the necessary steps to repair a poor credit score.
Unfortunately, there is no quick fix method to repair your credit score. Instead, it must be done by correcting errors to your credit history and making sound, responsible financial decisions over time.
To dispute inaccurate information, you must contact the credit reporting company and tell them what is incorrect and provide copies of documents that will support your claim. The credit reporting company will investigate the matter and should rectify the problem. However, if the problem is not corrected, you may receive pressure from debt collection companies to pay the debt.
Our Los Angeles credit reporting attorney can help you remedy your credit report if it's inaccurate. Please contact us today so we can help your credit score get repaired.
How to Repair Your Credit Score
You will need to write a letter disputing the inaccuracies you find to the credit bureau that issued the report. If you find inaccuracies on multiple credit reports, you'll need separate letters for each one that address the specific errors found on their report. Send the letter "Certified Mail, Return Receipt Requested."
In the letter:
- Explain that you are disputing items on your credit report
- Clearly outline each inaccuracy in a list
- Attach copies of the pages in your credit report containing these errors, and circle the item so that it is clear what is being disputed
- Explain why each item is inaccurate
- Include documentation to support your claim
- Request that your credit report be corrected at once
Sometimes a poor credit score is caused by making poor financial decisions. In these situations, you must take the necessary steps to get your finances in order. These include:
Make payments on time -- This can help improve your credit score. There are two easy ways to ensure that you make your monthly payments on time. You can set up email or text reminders through the banks to which you owe money. You can also set up automatic payments that withdraw a portion of your balance on a predetermined date every month.
Reduce your debt -- It is also important to take steps to reduce your debt. This will improve your debt-to-income ratio. If lenders see a very high debt-to-income ratio, they may question your ability to repay the credit they extend to you. This can lead to higher interest rates, and in some instances you may even be denied credit.
Stay consistent with your payments -- The longer you continue to pay your bills on time, the more your credit score will improve. Over time, the older credit issues on your report will count less and eventually fade away as your new good habits become consistent.
What is a Credit Freeze?
If you suspect or know that you have been a victim of identity theft, there are a number of steps that you can take to help prevent further fraudulent activity while you sort out the mess. One of these steps is placing a credit freeze on your credit report. Here are some other steps that can help you avoid identity theft.
The Federal Trade Commission (FTC) defines freezing your credit as restricting access to your credit report. When a credit freeze is in place, potential creditors cannot gain access to your credit report, making it highly improbable that an identity thief would be able to open any new accounts under your name. The credit freeze has no bearing on your credit score and does not prevent you from obtaining your credit report. Companies that you already do business with, however, such as a mortgage or credit card company, will still be able to access your credit report. The same if true for collections agencies that work for these companies.
Credit Freeze vs. Fraud Alert
In order to take the right precautionary steps to protect your credit, it is important to understand the difference between a credit freeze and a fraud alert. According to the FTC, when a fraud alert is placed on a credit report, potential creditors and third parties can still access the document. Although the fraud alert requires that potential creditors use "reasonable policies and procedures" to confirm your identity, there is still a possibility that an identity thief may get around these procedures and open a new line of credit.
In contrast to a fraud report, a credit freeze only allows companies you already have a relationship with to access your credit report. In this way, it prevents an identity thief from being able to get new credit. If the fraudulent activity involves existing accounts, however, neither a fraud alert nor a credit freeze can stop a thief from using them. If that happens, the compromised accounts must be closed.
Our Los Angeles Attorney Can Help you Repair Your Credit Score
If you're suffering because your credit score has gone down or has been fraudulently affected, our Los Angeles attorney can help you recover. We will help you determine what has caused your credit score issues and how to take steps to recover. This might mean seeking damages from the identity thieves that stole your information and might mean seeking compensation if the error was from a business or corporation. We will help you put holds or freezes so your credit score doesn't get further damaged.
For more information about whether or not you need help with your credit score, please take our fun and informative quiz:
Bring your case to our attorney, Howard Silver, and allow him to review your case for free. He proudly serves clients in Los Angeles, San Bernardino, Ventura, Riverside, and all of California. Contact him today by filling out the form on this page or calling (855) 341-2611.