I commend you on seeking information about Erasing Bad Credit Reports. It shows that you are serious about repairing your credit situation. The stigma of Bad Credit can stalk you for years! One bad mistake or mishap can snowball into a mess of financial disaster. Negative items can remain on your credit report for an average of 7 to 10 years depending on the nature of the debt. Following are things you need to do to begin erasing bad credit reports in the fastest time possible:
1. Get a copy of your credit report
Once you have a copy of your credit report from the 3 major consumer credit reporting agencies which are: Experian, Equifax and TransUnion, you need to closely analyze it for errors. Make sure all debt reports do in fact belong to you. Unfortunately there are cases of identity theft, fraud and reporting errors that many people have experienced. So definitely check your report thoroughly. If you do see anything you don’t agree with you have a right to dispute it! This is credit law. Dispute Guidelines toward Erasing Bad Credit Reports can be easily found in your credit report.
2. Don’t create New Debt
Work on paying off your current debt before even thinking about creating new debt. If you must get a loan to assist you with paying because you just don’t have the money, then make sure that the interest rates and fees will be lower than what you’re currently paying or you’ll just be throwing yourself back in deeper hot water. If you’re a homeowner, rolling your outside debt into a home equity loan can a viable option. Some advantages of Home equity loans is that rates are fairly reasonable compared to many other personal loans, and interest is tax deductible.
3. Cut Your Debt in Half
Improve your debt-to-income ratio be paying down all your outstanding debt (especially credit cards) at least by 50%. This bad credit repair step will start to do a lot to improve your credit score. Also try to pay more than the minimum balance on your debts. Paying just the minimum can make even the smallest debt compound interest and fees that can take YEARS to pay off!
4. Make On-Time Payments
Even one late payment can negatively impact your credit. Creditors view this as a sign that you are irresponsible or can’t handle your bills. Therefore, make it your business to pay off all bills by the due date. Matter-a-fact it is a good idea to pay a little early to make sure it gets to your creditors on time ( especially if you used to mailing your payments). And as far as mailing is concerned, I’d recommend that you get into the more modern system of doing automated payments by phone or online. This not only transmits your payments faster and more securely, but it also eliminates postage expense.
After the dispute process, make sure all debt that should have been removed HAS been removed. The dispute process typically ranges between 30 – 45 days. After this period, you will get a report that shows any updates or changes made. Keep tabs on items that are supposed to be eliminated or amended. Make sure those changes do in fact appear in your credit report over the next 30 days. If updates do not appear, it is a good idea to follow-up with Equifax, Experian and TransUnion (as well as your creditors if need be) to get a status update.
Remember: Erasing Bad Credit Reports is a process. Be consistent in your efforts to erase bad credit — Credit means everything in our society. If you follow the tips above combined with additional research, then your credit profile shall shine once again!-)