Debt Consolidation Credit Counseling In Phoenix

The most effective method of improving a low credit score is to dispute negative marks on your credit report. The reason this helps is because it will show a better payment history, this factor accounts for up to 35% of your score.

To dispute a mark you need to contact the bureaus and send a dispute letter. A letter must be sent to each credit bureau. Often upon receipt of your letter the bureau will respond with a letter requesting more information about the item.

The bureaus use this as a stall tactic. Instead of actually investigating the dispute, the delay is more cost effective for them. People will most likely give up at this point and keep on paying extreme interest rates.

In time, the bureaus will investigate the mark only if another dispute letter is sent with the requested information. While investigating, the bureau will contact the lender to verify the disputed mark.

If the mark can not be verified by the lender, it must be removed from your credit report by the bureau. For the best results, we suggest you wait until the lender has received a payment for the outstanding debt. Lenders normally do not want to spend money and time validating a noncollectable debt.

For example; with a charged off credit card account once the account is sold to a collection agency the lender has no more use for it. Thus when they are contacted by the bureau they will not spend the time to verify the account.

You can you can hire a service to dispute your credit for you or create a dispute letter and dispute your credit yourself. It is simpler to get rid of a charge off once it has been sold rather than outstanding.

The benefit of a service is that you will have more options to remove a mark if it is verified. Services can; request debt validation, escalated dispute information requests, creditor direct interventions, and in extreme cases an attorney can go to court and fight on your behalf.

Your credit score impacts your finances, place of employment, residence, and many more, thus is a very significant number. Roughly 25% of Americans are paying money in higher interest rates due to an error on their credit report.

In sum you can dispute your credit yourself through a dispute letter or by hiring a service to do it on your behalf. You can remove negative items from your report and stop paying the high cost of bad credit.