Personal Finance: What To Do When Bad Credit Is Not Your Fault!

Don't be a victim of credit report errors! You need to go right to the source - all three credit reports. Yes, all three reports! You must get reports from all three major credit bureaus. They are Experian, TransUnion, and Equifax. Do not get the free versions. Pay for them and get your FICO credit score at the same time. Here is why...

Your credit report contains all your financial history on which your credit score is based including errors and mistakes. If you can correct or update the information in your credit reports, your credit scores will change to reflect the new data. Getting and checking all your credit reports for errors is one of the best things you can do to repair your entire credit history and boost your average score. You may find errors in one report that are not in the others which is why all three reports are necessary.

Here is how to deal with errors in your credit reports to give your credit scores a boost:

First of all you should dispute errors in your credit reports.

Contact each of the three major credit bureaus, Equifax, TransUnion, and Experian, and get copies of your credit reports and credit scores. This will cost a few dollars but you need to do it. Carefully read over the reports and note any errors.

If you find mistakes, contact the credit bureaus, in writing. Point out the mistakes and ask that those mistakes be removed or investigated.

This is known as a 'dispute letter' and the bureaus must accept them. All credit bureaus are required, by law, to investigate your dispute within thirty days of receiving your letter. Send your letter "Return Receipt Requested" via the U.S. Postal Service. This will cost you about .00 but it's well worth it. The "Return Receipt" will tell you the date the letter was received at the credit burea. It is important to keep copies of everything, including your letter and your postal receipt to establish a paper trial.

In your letter, be polite. You should not be threatening or abusive in your letter. Calmly and clearly state the problem and request an investigation.

Point out that you understand the bureau is required to investigate your claim within thirty days and note that you will follow up. Be pro-active. Make sure you follow up with the issues you raised in your letter. Just because the agency investigates does not always mean that your credit report will end up mistake-free or that they will even inform you.

In this Internet society, most credit bureaus now make it easy for you to request corrections to your credit report on-line and many have information on their web sites that tells you exactly how mistakes must be handled to be effectively removed. It is important that you follow this information exactly so that the inaccuracies on your credit report are removed promptly and your credit score is updated as soon as possible.

By the way, don't assume that correcting information in just one of the reports will be automatically fixed in the others. You need to handle each bureau individually. If all three have the same error, contact all three to get it corrected because you never know which credit report will be accessed by a lender. Not all lenders use all three bureaus for credit information.

You are also permitted, by law, to add a note to your credit report if there is a problem you can't resolve.

Sometimes, there are sensible reasons why you did not pay a bill. For example, if a contractor refused to finish a job or did a poor job, then you may have refused payment, but the non-payment may still count against you on your credit report. You can have a note added that explains the situation.

Perhaps you are the victim of some other unusual circumstances showing up on your credit report that have affected your credit rating - such as a case of identity theft. Again, you can ask that a note be attached to your credit report to explain the problem and what you are doing about it.

When adding these notes, be very brief and to the point. Don't write a 5 page letter! Lenders, if they wish, may ask you for more detail during the credit application process.

Some creditors will pay attention to such notes and some will not, but it is a better option than nothing at all. Such notes will not affect your FICO score but will affect your credit history. More importantly, it leaves a paper trail of the problem that lenders can consider if they choose.

Fixing credit report mistakes is only a first step towards boosting your FICO score but it is a vital step that you should take starting today.

How To Finance Your Mercedes Benz

Financing your Mercedes Benz purchase may not be as difficult as you think. In fact, it may be pretty easy to find a lender who is willing to provide you with the finances you need to make this investment. That's because it's a solid buy. Lenders know that these cars are well-built and that they last, holding their value as they do. Keeping that in mind, you may want to consider what all of your options are. After all, you are going to pay for this vehicle. The question you have to ask, though, is how to save money on that investment.

Is Dealer Financing an Option?

One of the ways you can pay for your new Mercedes Benz is to simply purchase it through a loan provided by your lender. Dealer financing is not available through all vehicle dealerships. It is often available for both new and used vehicles, though, when it is available. You can get a good deal this way, but before you agree to the terms that your dealership lending office presents, be sure you are getting the best possible deal. That means considering other options for borrowing.

Your Local Bank

A bank or credit union can often help you to pay for the vehicle. These companies are willing to lend to those that they know, though some do have an open policy of accepting qualified candidates. If you have a bank or a credit union you've used for a long time, it may be a very good thing to discuss your need with your lender. Because they "know you" they may offer a great rate. The interest rate, term limits and the amount you can borrow are all dependent on that relationship.

Turn to National Lenders

Some credit card and secured lenders offer auto loans. These can help you to buy your Mercedes Benz as well. You can often connect with these companies online. Simply apply for a loan through the website and learn if you can buy. If so, the company will provide you with a letter to present to the dealership to show how much of a vehicle or loan you are qualified to obtain. This option is often done before you begin shopping for a car, but you can also do it once you've found the vehicle you want to buy.

Which of these is the best option for buying your Mercedes Benz? To know the answer to that, you have to consider the terms including the interest rate. This will ultimately make the biggest difference because it is the cost of the loan. To save money, look for the lowest interest rate possible.