You Don’t Have to Live with A Low Credit Score

Your credit score today affects many areas of your life. A lower credit score not only means that you’ll pay higher interest rates on mortgages, car loans, credit cards and other loans, but it could also mean having to pay more for insurance coverage.

If your credit score has taken a beating over the last four or five years as the economy has struggled in or near recession, you’re a long way from being alone. According to CreditKarma.com, the average credit score of Americans today is 661, which means that the average American has a hard time getting approved for credit, and often pays higher interest rates.

A 2004 study by the U.S. Public Interest Research Group showed that nearly 80 percent of credit reports contained inaccuracies, and this past August, 60 Minutes reported that a government study showed that 40 million credit reports contain errors and that 20 million contain significant errors.

The good news is that credit score algorithms are set up in such a way that a consumer with an 800 credit score will have a much harder time increasing his or her score by even a few points, but those with a score of 600 will find that they can improve their credit scores relatively quickly by taking the right steps.

The simple fact is that you aren’t STUCK with a low credit score, and you shouldn’t view it that way.

There’s just no good reason to ignore your lower FICO score, especially when you realize that almost everyone CAN improve their score by a significant number of points over the course of a few months to a year. It doesn’t matter what caused your score to fall. You can still improve your FICO score from where it is today, and the increase will make a positive difference in your life.

If your score is 500… you can probably make it 600 in six months or less, but certainly within a year… maybe even 640 or 680. And if your score is 640, you may be downright shocked to find out how easy it is to break 700 within so many months.

You can hire an expert to help…

Financial Education Services, headquartered in Michigan, has been helping consumers improve their credit scores for over a decade. They’re A+ rated by the Better Business Bureau and they offer a Satisfaction Guarantee or your money back.

Every client at Financial Education Services is assigned an expert Credit Coach who works with you throughout the year to maximize your credit score. And, they’re not expensive; in fact we found them to be among the least expensive out there.

Or you can do the work yourself…

The first step is to get copies of your credit report from all three credit reporting agencies, Experian, TransUnion and Equifax. Do not contact the three nationwide credit reporting companies individually, because they have set up one website, toll-free telephone number, and mailing address through which you can order your free annual report. To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Under the Fair Credit Reporting Act, both the credit reporting company and the information provider (the company that provides information about you to a credit reporting company) are responsible for correcting inaccurate or incomplete information in your report.

Write to the credit reporting company about the item on your credit report you think is inaccurate. Use this sample dispute letter. Be sure to include only copies (NOT originals) of any documents that support your position. Provide your complete name and address, and your letter should clearly identify each item in your report that you are disputing.
State the facts clearly, explain why you dispute the information, and request that the item be removed or corrected. Send your letter by certified mail, “return receipt requested,” so you can document what the credit reporting company received, and it’s a good idea to keep copies of your dispute letter and enclosures.
Credit reporting companies are required to investigate the items you question — usually this is done within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to whichever company provided the information.
After the information provider receives notice of a dispute from the credit reporting company, it must investigate, review the relevant information, and report the results back to the credit reporting company. If the information provider agrees that the disputed information is inaccurate, it is required to notify all three nationwide credit reporting companies so they can correct the information in your file.
When the investigation is complete, the credit reporting company must give you the results in writing and a free copy of your report if the dispute results in a change, but this free report does not count as your annual free report. The credit reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

For more information about disputing items on your credit report, please visit the FTC’s Website by clicking here: Disputing Errors on Credit Reports

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