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Raise Your Credit Rating

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The Fair Credit Reporting Act

It is true that you can use legal means to raise your credit rating. The process is simple, but unfortunately, many people do not have any idea about it. Section 609 of the Fair Credit Reporting Act (FCRA) is the solution to increasing your credit score by up to 120 points.

This strategy was discovered by Bruce McInnis Jr. in 1999. The section states that a consumer reporting agency is not supposed to extract disparaging data from the file of a consumer unless it is outdated or cannot be ascertained.

Any unverifiable information in a consumer’s file is thus supposed to be removed by the reporting agency. Based on this law, any incorrect disparaging data that cannot be ascertained should be eliminated from the report by the concerned reporting agent. The law states that not only the main credit reporter should eliminate this kind of information but also any other credit reporting company. The credit reporting companies will be held accountable if they pass on negative information that cannot be ascertained.

Debtors Can Challenge Reports

The FCRA Act gives the debtors the right to challenge any information that they may find inaccurate and was included in the report. Those reporting agencies will not have accesses to signed loan applications, bankruptcy filing or the application of your Visa card. All they depend on are electronic information that they get from creditors. The debtor may know that the information is accurate but when challenged the reporting agencies cannot prove its authenticity.

These credit bureau companies are kept in check by the government, but one is supposed to understand that they operate as private companies. They are in that case not obligated to report about anyone on anything. The negative events of the credit report are supposed to be in effect for seven years only, but the bureaus can report them the way they choose because it is not a legal requirement. This is why the government has to keep them on toes to ensure that they do their job in a genuine manner. They are supposed to do their job in the right way and the challenge is to the advantage of the consumer because, when they are forced by the government to verify the genuineness of the report, they have, they will definitely take the negative unascertained information off to keep their image clean.

This restoration of the credit report does not discard the negativity of your credit events. What it does is make them undetectable by any party that may be scrutinizing a credit report.

Know Your Rights under FCRA

You should get a copy of your credit report, which must contain the whole information that is in your file

Your are supposed to be furnished with the details of the receivers of your credit report for any purposes that they needed it for

A company that may reject your application should tell you the credit bureau they contacted for your credit report if the rejection is based on the information of the report. You should also get a copy of that credit report.

You can attach an explanation, in summary, to your credit report if you dispute and the resolution is not satisfactory.

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