Everyone makes mistakes. For many people just one mistake may be all it takes to damage the permit record for life – or at least for the 7 to 10 years that it takes for the mistake to fall of the credit history. Experts will often tell consumers that the only way to correct the problem is with time.
The industry has thrown up a brick wall that forces consumers with credit problems to beat their heads up against that wall. Instead of working to fix the credit ratings the industry wants to ignore the problem until it goes away on its own – by falling off the credit report because of time.
There is hope for everyone. People with credit problems can begin to work their way back into the credit industry before their records are cleared. Consumers that have bad credit ratings because of wrong credit reporting can find ways to repair their credit history (even if the experts say that only time can repair the credit ratings).
Bad credit ratings do not have to be the end of a person’s financial world. It is possible to get a loan even when there are bad marks on a credit history. Despite what many experts may say the consumer does not have to wait for a clean credit history in order to act. The key is to find a local or regional bank that has lending authority in house. Working with the lender directly can help a consumer choose the right credit path for his or her needs.
Sometimes lenders will need a period of time where the consumer has a clean record. Two years of timely payments can go a long ways toward opening financial doors. Creating a savings account and making regular payments into that will also show fiscal responsibility. Borrowers who show a change in habits and increased dependability are ones that lenders are more willing to give a second chance.
A borrower with a troubled credit history may have to pay a higher interest rate for a period of time. It is possible to write in an agreement that the interest rate come down after a reasonable amount of time has passed and payments have continued to be met on time.
The second group of bad credit history consumers seems to deal with the brick wall more often than others. These are the ones that have bad credit ratings because of errors. Much of the industry is not inclined to helping individuals with these problems but there are some things that can be done.
Inform the reporting agency about the discrepancy IN WRITING. State the facts of the situation, including why you dispute the information. Send the letter by certified mail so that you will have proof the letter was received. The consumer reporting agency is required to send you the results of their investigation in writing.
Contact the company that sent the reporting agency the information IN WRITING. Explain your dispute in detail and be sure to keep a copy of all correspondence.
It seems simple enough to fix problems on credit reports, but the industry does not always make it easy. Getting incorrect information changed may require working with a lawyer. Choosing a professional may cost a little money but it could save you thousands of dollars in the end by fixing problems that force your interest rates higher.
Industry experts may make credit problems look like a brick wall that can not be passed. The truth is that time wears away the brick wall and there are ladders and steps that can help the consumer get over that wall.
Next: Credit is NOT Evil