How to Repair a Negative Credit Report

 

THE INITIAL STEPS TOWARD ESTABLISHING A STRONG CREDIT HISTORY 

The particular approaches to credit restoration are determined by the information contained in your credit report. You'll need to acquire your credit report and review it to remove any negative information before you can begin repairing your credit. Many credit reports also contain an explanation of what is hurting your credit negatively. This will help you figure out what has to be fixed in order to boost your credit.

While you may have one or two difficulties that are negatively hurting your credit score, all credit report concerns may be resolved with a little planning and patience.

INACCURATE DATA ON YOUR CREDIT REPORT

Inaccurate information on your credit report is, by far, the easiest item to correct. Credit report inaccuracies could simply be caused by clerical errors. Don't ignore these mistakes because they could harm your credit. To have erroneous information deleted from your credit report, send a dispute letter.

ACCOUNTS THAT ARE PAST DUE

The most significant influence on your credit score is your payment history. Payment history accounts for 35 percent of your FICO score, thus late payments will affect your credit score more than anything else.1

Bring any outstanding accounts up to date. If you have bills that are 30 or 60 days past due, make the payments to keep your credit from suffering. Accounts that are 90 days late are deemed very delinquent and may be sent to collections.

Negotiate the removal of charge-offs and collection accounts from your credit report with creditors and debt collectors. They are not required to remove this information, but you may be able to bargain with them by offering to pay for its removal. If the bill has already been paid, a goodwill letter will most likely enough.

BALANCES THAT ARE TOO HIGH OR TOO LOW

Your debt level has the second-largest impact on your credit score, accounting for 30% of your FICO score.1 Your credit card balances should ideally be at or below 30% of your credit limit. That means a credit card with a $1,000 limit should have a maximum amount of $300.

To begin, reduce your credit limit by reducing over-the-limit debt below your credit limit. Then focus on reducing all of your credit card balances to a credit-friendly level.

JUDGMENTS THAT HAVE NOT BEEN PAID

Any outstanding judgements must be paid. They'll keep harming your credit until you pay it off or the statute of limitations expires, whichever comes first: seven years or the statute of limitations. The restrictions differ by state.2

DEFAULT ON STUDENT LOANS

The default on a student loan isn't necessarily permanent. Find out what your student loan repayment alternatives are to get them out of default by speaking with your lender. Before your student loan is considered current, you may need to make several months of timely payments. In such cases, you might wish to look into a student loan forgiveness program.

Bankruptcy, Foreclosure, Paid Tax Liens, and Paid Judgments are all things that can happen to you.

There isn't much that can be done with these types of submissions unless they are incorrect. You'd use the dispute process to get the item deleted from your credit report in that situation. It's possible that you'll have to engage with the courts and banks to correct their records.

If your credit report shows bankruptcy or another severe delinquency, work on rebuilding your credit by adding good payment history and demonstrating that you can manage your credit. Apply for a secured credit card if you can't get a conventional credit card accepted. Make minor purchases with the card and pay your bill in full each month.

Related Articles:

https://thephenixgroup.com/ad-astra-recovery-services-what-you-should-know

https://thephenixgroup.com/el-paso-a-hot-housing-market-with-affordable-homes-and-well-paying-jobs

https://thephenixgroup.com/how-does-lexisnexis-tie-into-the-credit-repair-process