Learning a new language can be fun.
But it comes with its challenges.
Learning the language of credit is also like learning a new language. Your brain has to sometimes unlearn things to be able to re-learn new concepts, tools, words and phrases. The problem with learning about credit is just the same. We have gathered a specific kind of knowledge related to credit over the years from different sources. It is not easy to let go of those concepts, especially when you are hearing about them for a long time and from reputable resources. But you will be surprised to know that not all of the information you have gathered about credit over your life is correct. In fact, there are so many fallacies and myths associated with credit, credit reports, credit history and credit scores that it has become difficult to differentiate between fallacies and facts.
If you want to gain authentic knowledge about credit and other related terms, you will need to unlearn somethings and replace them with new, up-to-date and relevant language and information.
We, at Your Rocket Credit, take it as our responsibility to educate our clients about all things credit. We aim to make them so knowledgeable about credit that they are able to tell facts from myths and make the right financial decisions. They need to learn how to communicate with credit authorities to be able to convey their message to the concerned people in the right way, through the right medium and at the right time.
The Credit Language
Credit is not something that is truly and completely understood by most people. Since it is a purely technical term, you need to make sure you get the basics right before you go on and talk to someone about it.
Here are the credit basics you need to know:
Credit is defined as the borrowed money that can be used by someone to buy anything. They can use this money to buy a home, car or even something as simple as groceries. The money is borrowed from a lender under an agreement that you will pay them back at a later date. The payment usually also involves an interest rate that also needs to be paid by the borrower to the lender. Credit, in simple terms, is the money you borrow from someone when you don’t have enough cash to make payments for something you need to buy now. Thus, you leverage someone else’s money to make a purchase. The money is usually lent by a credit card company or a bank.
Errors in Credit Report
It is important to note that you can always challenge the credit score that has been rolled out by a credit bureau if you feel that it is not right. There can be administration errors, faulty listings and many other issues that may affect your credit score. In this case, you can file a legal complaint to the credit bureau to check your credit score again. You can also highlight the errors you have noticed and the information that seems to be incomplete.
In such cases, a formal letter is written to the corresponding credit bureaus. If you are not sure what to write in your complaint letter, below is a template that you can follow.
Your City, State, Zip Code
Name of Credit Bureau
City, State, Zip Code
Dear Sir or Madam,
I am writing this application to dispute the following credit information in my file. The disputed items are also encircled on the attached copy of the credit report I have received.
This item [Insert Item] is [Inaccurate/Incomplete] because [Cite the Inaccurate or Incomplete Information along with the Reason]. I am requesting you to delete this item [Or Make Another Specific Change] to correct my information.
Enclosed are the copies of [Insert Detail] supporting my position. Please investigate the matter and [Correct/Delete] the disputed items at your earliest.
Enclosures: [List what you are enclosing]
When you send a letter like the one written above, you have done the work from your end and it is now on the credit bureau to look into the matter and resolve the dispute as soon as possible. It is important to note that you have done all your homework in this dispute letter. You are also attaching everything that you have regarding this to ensure they have maximum information to resolve your case. A letter like this allows the credit bureau to work at their best as they have all the information they need without having to go back and forth over the same thing again and again. Sending a formal letter like this will show the authorities that you are to be taken seriously.
Learn the Best from Us
It is important to learn how to speak the language of credit and how to speak with and write to credit bureaus and creditors in their language. It makes you sound just like them. If you think you are not really good at this and need some help from the experts, you can always get in touch with us. Our experts will guide you on what to say and when to say it. It is important to note that timing is everything when it comes to all things credit. Only an experienced individual can help you with these basics.
Your Rocket Credit aims to educate its clients by providing them all the information they need to learn the language of credit. Our experts will talk to you in detail and answer all the questions you have in mind regarding your credit report and score.Get in touch with us at 830-822-2436 to get started.