How to Resolve Credit Rating Issues

Credit rating issues can prevent you from acquiring an affordable mortgage, credit card, personal loan, rental apartment, a good job, a cell phone plan and many other things. Luckily, a poor credit rating does not have to be a boulder that you drag around behind you for the rest of your life. There are several steps you can take to resolve many common credit rating issues and build up your credit score again.

Instructions

1

Order your credit reports from the three major credit reporting bureaus (TransUnion, Equifax and Experian). Information can be different across all three reports. You can get a free credit report once a year through the resource link below. Print out a copy of each credit report for your records.

2

Examine your credit reports for any errors. Common errors include accounts that don't belong to you, mistaken dates for payments, an incorrect birth date, incorrect late payment reports and more. File a dispute to each credit reporting bureau that you have detected an error with. They are required by the Fair Credit Reporting Act to respond to any disputes within 30 days. Be prepared to send copies of documentation supporting your dispute when requested.

3

Attempt to have any late payment reports deleted from your credit report. This has a higher chance of success the sooner that you contact your creditor about it. Contact the creditor that filed a late payment report about your account and request a "pay for delete." If this is your first late payment, they will be more willing to grant you leniency. Request that they send any agreement to you regarding your credit report in writing.

4

Attempt to settle any delinquent accounts that may have been sold to collection that appear on your credit report. Document any collection attempts as thoroughly as you can. If the collection agency violates the Fair Debt Collection Practices Act, you may be entitled to sue them for the debt to be discharged along with damages for each recorded violation of the law. Start by requesting a "pay for delete" for the account for 10% of the total debt. You may also request a "pay for settlement" or "paid in full" entry on your report, even if you only pay a fraction of the amount owed. Ensure that you get an agreement from the agency in writing before you provide any payment. A deletion from your credit report is the best possible result for your credit score.

5

Defend yourself against any lawsuits that may be filed against you to collect delinquent debts. Appear at any court dates that you may be requested to. Provide documentation of any violations of the FDCPA to bolster your defense. Request that the creditor submit proof that you owe the debt in court. A debt lawyer may be able to assist you, but is not necessary. Many creditors decline to pursue judgments against defendants who show up to their court dates, because it is otherwise so simple to get default judgments against debtors that fail to make an appearance. Attempt to reach a settlement using a similar strategy to the one outlined in Step 4 with the creditor's representative in court, also requesting that any agreement be in writing.