How to Restore the Integrity of Your Credit Card Account

Credit card companies extend credit based on credit reports and a FICO score. The Fair Isaac Corporation formulated the FICO scale for creditworthiness. Outstanding consumer charges on credit cards amounted to $785 billion in March 2011, according to the U.S. Federal Reserve. Poor credit hurts your chances of obtaining part of these credit offerings, qualifying for additional credit cards and increasing your credit limit on your current cards. Restoring your credit integrity requires an organized effort to repair errors and improve your credit status.

Instructions

1

Order a copy of your credit reports (annualcreditreport.com) and request your credit score (myfico.com). Under the Fair Credit Reporting Act, the three largest national reporting companies, TransUnion, Equifax and Experian, must each provide one free report by request every 12 months, but obtaining your credit score requires a fee. Additional reports also require a fee per copy or online download.

2

Check the reports for accuracy. List your active credit cards and match the numbers with those on the report. Also check your monthly bills to make sure monthly payments and the amounts owed correlate with the stated figures on the credit reports. Highlight any discrepancies between your records and the official reports. Both the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act protect your rights to repair any mistakes or errors on your reports.

3

Telephone the credit companies listing unpaid, late or delinquent credit card payments. Use the credit report information page for telephone or Internet websites and file reports to correct errors. Take notes to record the person contacted, any identification number or department and the date and time of the conversation about your credit report. Support conversation topics with a follow-up letter and send this letter to the credit agency via registered or certified mail.

4

Contact the card companies listed as creditors to resolve credit card delinquency problems. Take notes when discussing your credit issues with the card companies. Send snail-mail letters and copies of receipts or paid checks for items erroneously reported as owing. Use certified or registered mail to document the date for your mailed responses.

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5

Obtain letters showing accounts paid in full from credit card companies and update your credit report with the repaired credit actions. Send copies of the resolution letters and payment records to each of the credit reporting agencies. Allow four to six weeks for the new updates and obtain a new copy of your credit report from the three credit reporting agencies. Note any information still listed as past due or owing on charge cards and repeat the repair process, as needed.