How to get the credit issues out of your credit report?

How to get the credit issues out of your credit report?

There is no doubt that your credit history plays a vital role in your financial life. The information in that report is the basis for your credits score that the lenders, banks used to decide where your loan application gets the approval or not, how much you pay for the loans and even how much you will pay for other products such as insurance.

It is worth pointing out it is hard for you to buy a home, rent an apartment, apply for a credit card and get a car loan when you get a bad credit score because of late payments, unpaid debts or so on. Moreover, you might pay higher bills since bill providers are legally allowed to charge you for a poor credit.

However, bad credit does not have to last forever. I would like to share with you some methods to get credit issues out of your credit report.

Step 1: Order and review your credit report every 12 months.


You should get a copy of your credit report that offers for free from each of major credit -report agencies (credit bureaus) such as Experian, Equifax, and TransUnion at AnnualCreditReport.com. Because there are discrepancies among them you should check carefully all of the items in the report. For example, your TransUnion credit report might have an error while Experian and Equifax are precise.

Step 2: Look for errors


You should check the following things that focus on any negative items such as credit card debt, old bill you never paid and so on. Then, you should fix these items below:

  • Identification info
  • Date Opened
  • Account status (e.g., Closed)
  • Payment status (e.g., Collection)
  • Credit Limit
  • Anything else that appears to be inaccurate
  • High Balance
  • A higher balance than what you carry. This could indicate mistaken identity or identity theft.
  • A paid off account that’s still listed as unpaid
  • Accounts that do not belong to you
  • Old negative information still reflects on the report (Most negative information stays on a credit report for seven years, and Chapter 7 bankruptcies remain for 10)

It is worth pointing out that the most significant part of your credit report is your identification info: your name, social security number and so on. With an incorrect Social Security number you can have serious consequences that you must fix immediately.

Dispute errors on credit report.
If you find an error, you should notify the creditors right away. The Federal Trade Commission makes the process really easy with this sample letter or online form. Fill the form along with any documentation supporting your dispute. You should document everything and follow up closely with the people you speak with at the credit bureaus and lending institutions.
If your dispute gets the approval, it will be notified to all three credit bureaus so they can fix your report.

Improve your credit habits


In order for you to catch up on missed payment, you can work out a hardship payment plan with your creditors that you give them a call and ask what relevant programs are available.

For late payments, you can draft a “goodwill letter,” which is sometimes referred to as a “goodwill adjustment.” If you generally have a good history with a creditor, they’re often willing to forgive a late payment here and there and update your credit report accordingly.

If you have a parent or spouse with solid credit, you might consider asking them to add you as an authorized user to their credit card. Therefore, you can get a new line of credit.

You should avoid closing accounts that you’ve had open for a long time because it adversely affects your credit history, reduces your credit utilization and so on.

Pay your credit card bill, mortgage bill, car loans, student loans and any debts on time
Bring the accounts current and continue to make your payments on time.

Bad credit does not have to last forever. If you read this book: How to Remove ALL Negative Items from your Credit Report, you can learn about the easy process that the professionals are using and charging thousands for. Based on simple steps, you will learn how to remove all negative items on your credit reports, so your FICO score will dramatically improve. As the result, you can get a good interest rate to apply for a mortgage, car loans and so on.

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Author

Amy Nguyen

Amy Nguyen

I feel happy to share my experiences with you about Travel - Food - Life around the world. I hope to inspire you to Live-Love- Laugh :)

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