Raise Your Credit Scores Yourself

Take Charge of Your Credit Score!

“If you don’t keep track of your own credit score, someone else might!” – Jan Leasure

Dear $uper $aver: I have been fretting over my credit for more than two years! My husband and I are trying to purchase the home we are living in. Our problem is that our credit scores are a disaster. 

We were trying to meet a deadline for a home purchase. When the deadline was extended because the contract was for a short sale property we were ecstatic, but in 60 days our scores have not improved.

We are just completing a Chapter 13 bankruptcy and are totally confused. Our scores are in the low 500s and everything that is included in the bankruptcy still looks like bad credit. Is there anything we can do? Pay a credit repair agency? Please help. Sincerely, (Name withheld) Woodstock, Ill.

Dear Reader: Actually, there is plenty you can do on your own without paying a credit repair agency. I have had success following these step-by-step directions. If you take charge and do it yourself, it is moderately time-consuming, however, you will save yourself an enormous amount of pain as well as money in the end!

• Experian — P.O. Box 2002, Allen, Texas, 75013, 1-888-397-3742, www.experian.com
• TransUnion — P.O. Box 1000, Chester, PA 19022, 1-800-916-8800, www.transunion.com
• Equifax — P.O. Box 740241, Atlanta, GA 30374, 1-800-685-1111 www.equifax.com

Here is what you need to do. Please see the three bureaus listed above. Experian, TransUnion and Equifax. Go online to each one and follow directions on disputing your trade lines. Have your driver’s license and Social Security card handy and try to do this on a computer in a quiet place. 

Dispute credit online

The first step in disputing your credit is online. It will be helpful to have a copy of your credit report in front of you so that you know exactly which items are reporting incorrectly. Let the bureaus know which trade lines are in your Chapter 13 and which items are reporting incorrectly. They will be identified by a partial account number. If you have the exact account numbers that would be helpful. They (the bureaus) may ask for you supporting documentation to prove that all of the items are in your Chapter 13 and when the Chapter 13 will be paid off.

Snail mail documents

Once you dispute online, or possibly on the phone, there is another step. You will need to send each bureau, by overnight mail via post office (my preference because the USPS sends overnight to P.O. boxes and you have a written receipt). Copies of your driver’s licenses, your Chapter 13 documents and a letter from the Chapter 13 trustee stating that you only have one or two payments left. See below what you need to send to the bureaus;

1. Cover letter stating that your Chapter 13 is not showing on your credit report and that all trade line items are reporting incorrectly as still owing the full balances.
2. Include clear copies of your driver’s licenses (of you and spouse). Copy of your Social Security card if you can.
3. Full copies of your Chapter 13 papers (copies — not originals).
4. Letter from the trustee stating that you only have one or two payments left if you can obtain one.

The credit bureaus then will have all documentation they need to update your credit file. Your scores should change within 30 to 45 days depending on when you send it out. 

Please keep me posted on your success. Also, I would try to do this myself before paying a credit repair agency. You can do it faster, cheaper and less painfully yourself if you put in the time.

Remember that any documentation you send in, keep an identical copy for your records.

Sincerely, Jan

PS: There is also an interesting consumer-driven credit card blog, CreditCards.org that offers some useful and interesting information, including the answer to the question that is burning in your psyche ... Should I “Friend” my credit card company on Facebook?  (My answer? only if you always make your payment on time!)

We are all in this together. If you have money-saving suggestions (or problems to solve) please share them with me so I can share them with others. If you have something to report or want to share your money-saving tips, share here, or drop me an email at Jan@Jan-Leasure.com. If your letter is chosen for $uper $aver of the day, you will receive a free copy of The Coupon Encyclopedia or How to Save $1,000 a Year at the Supermarket!