If you have a bad credit report, it becomes a constant reminder of the mistakes you made in the past regarding your financial life.
Sometimes the mistake is not your fault but as a result of a business transaction or from the credit bureau. Whatever the case, it’s your duty to ensure that you have a bad credit report and late payments removed.
The advantage of removing a negative credit report is the ability to have a much better credit report score. If you don’t have a good credit score, it deprives you of the ability to access loans and approval of credit cards.
Below are measures that will help you get rid of negative data from your credit agency report.
Send an altercation with the credit agency or bureau
The types of thorough information that ought to be contained in the credit report are listed by the Fair Credit Reporting Act. The Act is a Federal law which gives you the legitimate right to a correct credit report. You can challenge any errors if you perceive there are any on your entire credit report. Send your credit report dispute via a mail or online.
It is the easiest way so far.
However, you need to apply for a print out of your current credit report to make the application. Simply submit your dispute to the credit agency that provided you with the credit report.
Draft a letter and send it to the credit agency via an email outlining the data from your report and attach copies of the evidence you have. After proper investigation, the credit agencies will either rule in your favor or not. If their investigation establishes a valid dispute, the bad credit entries entered in error will be expunged from the credit report.
Submit a dispute against the company reporting you to the credit agency
You don’t need to go through the credit bureau to prove that there was an error. File a dispute with a business that disclosed the mistake to the credit agency directly. Such businesses may include credit card issuers, a bank and or debt-collector.
Instead of requesting an investigation by the credit bureau, or send a letter to the business mandating them to carry out an investigation regarding your dispute. If the business discovers an error in your credit entries, they will inform most of the credit agencies of their findings and ask them to make the appropriate corrections.
Pay to have negative entries deleted
When a bad credit entry is reported correctly, you need to apply a different approach to have them deleted. No credit bureau will delete a negative credit entry, after verifying it to be accurate and correct. You need to put on your negotiation apparel to convince the credit bureau to delete the report.
This option is available for delinquents, past due or accounts. All you need to do is pay the balance fully other to have the bad credit report removed. Most creditors will find it difficult to refuse this offer.
Make a sympathetic appeal
After you have paid your creditor, it is usually at their discretion to either delete the negative credit report or not. But before you pay the account in full, ensure that you bargain the removal of bad credit report after payment has been made. After making payments, you need to politely request that they remove the negative reports on the grounds of goodwill.
Be sure to mail the creditor stating the reasons why you paid late, remind them of your continuous patronage to their business and finally request that the report is in your favor. Note that your only appealing to their conscience, they are at liberty to respond or not. Talking to the correct and designated person is also a factor that will facilitate your request.
Wait for the credit report to expire
If all the other options fail, wait for the report to elapse. The law provides 7 years as the time limit for a negative report to elapse.
This simply means that a negative information on your credit report has 7 years to stay before it can be expunged. However, in the case of bankruptcy, the time limit is 10 years. Nonetheless, as the report gets older, the effect of the negative report on the current credit score diminishes.
Also, if you would be able to change it with any positive information it will not affect you as much. 7 years is not a joke but in no time it will come and go.
If you have other active and open accounts, a timely payment is advised.
The Downside to all these options
Filing for bankruptcy
If you file bankruptcy it will not eliminate the negative information that is contained in the existing credit report. The fact that your debts have been discharged after filing for bankruptcy, your balance will be $0 and the details of the account will still be on your detailed credit report.
Other accounts which were then included when you filed for bankruptcy at some time will be included as such.
Close your account
Most folks believe that when they close an account, the negative credit report will disappear. This is not true because when you fully close out an account including a due balance from the past, your payments will reflect as unpaid or overdue until payment are made in full.
Closing existing and usable an account only stops you as a person from working with it.
Pay the delinquent balance
This will also not have any positive effect on the existing credit report. After you paid the balance, your account will reflect as “ being Current” or “ being OK” only if the account is deemed uncollectible or in this case, in collections. Negative reports definitely continue to reflect even when an account is a charge-off or a collection account.