What would your financial status be like if you could erase bad credit from your credit file?
Maybe you could not forget the consequences of your negative report, but you can prevent them from making serious impact on your future credit.
Here are some practical tips to help you erase bad credit.
1. Beware of quick erase bad credit scams online.
The last thing you would appreciate right now is a false claim that these credit repair services with ads online, on TV and in newspapers, can totally remove records of bad loans; remove judgments, bankruptcies, and liens, from your credit report in a matter of days. There is no such thing as 100% success rate in erasing bad credit without looking into the reasons why a borrower needs a quick fix in his or her credit file. Rebuilding credit takes time, and so is erasing bad credit.
A legitimate credit repair operation will never give a “100% success guarantee” and offer quick fix for your creditworthiness without going through the legitimate process of improving your credit report. Any credit repair agency knows that it takes skills, knowledge and experience plus conscious effort to rebuild a negative credit report.
2.Know your rights as a consumer.
You have the right to accurate and updated information in your credit report. No one can take that right away from you, not even a creditor or the credit bureaus themselves.
First and foremost, you have to ask for an investigation. The credit bureau will not remove any negative information without requiring you to send a letter of dispute with supporting documents to ensure that you are not making a frivolous allegation. You can also hire a reputable credit repair company like Clean Credit to investigate for you and work on the dispute.
What should I do when a bank or any lending institution denies my application for credit?
Don’t take any party’s adverse action against you at face value. Whenever your application for employment, credit or insurance is denied, ask for your credit report within 60 days upon receipt of the company’s action. Make sure that the report is accurate and contest any inaccuracy, especially if you suspect that you are a victim of identity theft. Credit reporting companies are required to furnish you with a free copy of your credit report once every year. So, ask for it to check if there are some issues that you need to deal with, especially if they are decreasing your chances of obtaining good credit.
How much does it cost to dispute mistakes or outdated entries on my credit report?
It is free. If your insurance company provided inaccurate information, it has the legal obligation to correct it. In the same way, the credit bureau like Equifax is also responsible for correcting inaccuracies or incomplete data in your credit file. Therefore it is advisable to contact both the credit bureau and the information provider (insurer, mortgage lender, employer, etc.) to oblige you of your right to correct information in your credit report.
Within 30 days the information provider will investigate the items you questioned. If you sent a dispute to the credit reporting bureau, the latter shall send the information you sent to the credit provider to prove inaccuracy of the report. The information provider will begin its investigation and report the results back to the credit bureau and advise it to correct the entry in your file, if the investigation reveals that the information in question is inaccurate. The information provider will also send notice to all other credit reporting bureaus in the country to correct the erroneous entry.
What happens when the investigation didn’t resolve your dispute with the credit reporting bureau?
If despite your attempts to erase bad credit, Equifax, Dun & Bradstreet and Experian still refuse to correct your entry, because their investigation showed that your dispute is frivolous, you can still request that a statement of your dispute be included in your current and future credit report. You can request the credit reporting bureau to furnish anyone who requests for your credit report with your statement (dispute). While it may not do anything to boost your credit score, it will give you an opportunity to explain yourself to future creditors and interested persons.
4.Hire a reputable credit repair company.
Credit repair companies cannot give you false promises. It is also illegal for them to charge you with a hefty price even before they begin working for you. Here are some tips when hiring a credit repair company:
- Read the contract and try to ask questions about the services they promised to perform.
- Ask how long it will take them to give you feedback of their services and how long you can expect results.
- Enquire about the total cost of credit repair services before you utilise their services.
For more tips on how to erase bad credit, contact Clean Credit today!