Do-It-Yourself Credit Repair
How to Repair Your Own Credit
So far we’ve gone over options such as consumer credit counseling or bankruptcy to handle your debts. However, for most people the best way to deal with debt is to do it yourself.
The FACT Act
The Fair and Accurate Credit Transactions (FACT) Act is a US law was passed by George W. Bush in 2003 that governs the way information is reported on your credit report. The goal of this act is for consumers to be treated fairly when they’re applying for credit and to protect them from unfair practices and identity theft. It also allows every individual to receive a copyof their own credit report each year for free.
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If you are looking for detailed information on the Fair and Accurate Credit Transaction (FACT) Act you can access it on the Federal Trade Commission's of the Secretary website here: Fair and Accurate Credit Transaction (FACT) Act . In its simplest form the FACT Act provides the policies and procedures for the following:
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National standards for lending
Lenders are no longer allowed to lend based on the following criteria: sex, race, religion, and sexual preference. -
Improving credit reporting standards
Credit Bureaus are required to investigate all disputes promptly and correctly. Disputed items that are found to be incorrect or no response was received are deleted. If these items are again reported by the creditor, they must notify the consumer within 5 days of placing the item back on the credit report. -
Consumers are entitled to one free copy of their credit report annually
This allows consumers to review their own reports on a regular basis for inaccuracies. -
Companies can no longer put a customers entire credit card number on in-store receipts
They must only include the last 5 digits of the card number in order to hinder identity theft -
National fraud alerting process
Consumers can now report suspected fraud freezing their credit reports and alerting neccessary auhtorities -
Identity theft prevention policies
These policies are imposed on lending institutions in order to stop identity theft. FTC regulators enforce and ine those companies that are not following these guidelines
As you already know, getting a copy of your credit report is really the first step in working on the road to credit recovery. The FACT Act allows you to look at your own report and then determine where inaccuracies lie. You then have the power to dispute what’s on your report.
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Having your report will also give you a true picture of where your credit stands. You may have been living in denial about exactly how much debt you have, but when it’s written right under your nose, it’s harder to live in a dream world.