1. Not understanding their rights. The Federal Trade Commission has numerous laws pertaining to credit, credit scoring, credit reporting etc… Understanding these laws and in particular the individual “statues” within the laws help immensely when correcting problems with the three major credit reporting agencies. (Experian, Equifax & TransUnion) Most people simply don’t have the time or expertise to read, study and understand what can be done to improve their credit.
2. Documenting the entire process of correcting inaccurate information on their reports. It is estimated that up to 80% of Americans credit reports have inaccurate information on them. Documenting when letters are sent and knowing the timeframe the Credit Bureaus and Creditors have to respond is very important. Also, remember to send all documents Certified Mail with a return receipt request!
3. Being patient during the process. So many people I’ve spoken with over the years simply get exhausted with the bureaucracy of these huge entities. You must be persistent, patient and knowledgeable in your efforts.
4. Disputing only with the Credit Bureaus. When challenging inaccurate, wrongful or obsolete information on your credit reports it increases your results if you go after the creditors both original and whoever may have the information at this time. As you probably know, “bad debt” is sold many times and thus the same negative information can be reported by multiple organizations!
These are just a few of the reasons people get frustrated and give up in trying to improve their credit. Follow these simple rules and begin the first step in proactively addressing your credit issues and you’ll be well on your way to an eventual “A” Credit Rating!