Sometimes bad credit can appear as irresponsibility in money management exists. On the other hand, in most situations this happens as unexpected financial hardship appears. It is highly probably that at one point in time all was perfect and then something happened as losing a job or becoming disabled. When you fall behind and the debts keep growing havoc appears and it directly impacts credit rating.
A credit repair agency will do everything possible to remove the bad credit report entries but what they will not tell you is that there are different things that you can do to have them all removed yourself. All would cost less. 2 main methods exist by which this can be done.
Method 1 â Filing Credit Bureau Dispute
FCRA (Fair Credit Report Act) requires the credit bureau to investigate all items that appear on disputed credit reports. In the event that info is false, unverifiable or inaccurate then it has to be either removed or corrected from the report. Bureaus will have one month from the moment the notice was received to complete an investigation.
Whenever inaccurate information appears on credit reports there is a need to start a dispute. The problem is that many have had really bad luck with disputes because some items were accurate. This includes collection accounts, judgments and repossessions. In the event that these items are not properly verified by a creditor (or judgments) while the investigation is under way then they will need to be removed.
In the event that one legitimate entry is to be disputed you will need to write letters to every credit bureau and state the particular entry that you want to attack. You do not have to offer extra explanations. On the other hand, before the entry is to be verified it always remains on record. In the event that the creditor will verify information after one month then the bureau can reinstate it if they notify you five days before this is to happen.
Method 2 â Creditor Negotiations
Sometimes you can be intimidated when you deal with a creditor. This is especially true when there are problems. On the other hand, it is a really good idea to speak to the creditor and try to remove negative information.
In the event that you are faced with a couple of late payments and that is the only bad credit scoring move you did then creditors might remove them if regular payment schedule is resumed. If you were faced with repossession or accounts were turned over other collections, full payments can convince creditors to remove negative entries. The trick is to give it a try even if it does seem like being a long shot. You can ask for late payment info to be removed only after the account was brought to date. You might want to think about negotiation and a deal might be needed before anything will be paid.
What To Do When Bad Entries Are Not Removed
Disputing information is no real guarantee that creditors are to remove them from records. If this does not happen your only chance is to build positive information on the credit report.
When you want to rebuild your credit the first step you have to take is to make sure all past due accounts are current. Think about different deals that can be done with creditors and even consider working with credit counseling agencies. What is really important is to never miss payments on accounts that are current.
When all accounts are current you need to make sure that they will remain that way. Remember that it is highly important to pay everything on time. This will raise your personal credit score as time passes. If this happens the good entries will be worth more than the bad ones.