Many people don’t qualify for the very best loan rate, unaware that it is due to the errors on their credit report. More than 85% of consumer credit reports have mistakes on them. However, if the negative information is accurate then there is nothing you nor a credit-repair company can do to remove the information until a certain amount of time has passed. Usually negative information is removed in 7 years for a bad debt and 10 years for a personal bankruptcy.
There is a growing number of credit repair companies who prey on desperate consumers. They claim to be able to remove negative items from credit reports. Don’t be fooled
by these claims. The only legitimate way to repair credit is something that you can do for little or no cost:
1. Dispute any errors on your credit report with the credit bureaus. They will investigate and correct any errors. Provide as much information as you can to assist
them in their research. Even if you can’t prove the record
wrong, you have the right to insert a brief statement in
your record about any disputed item. You can also request
that a corrected report be sent to anyone who requested
your report in the last six months.
2. Start paying your debts on time and on a regular basis.
Pay off any old debts. Lenders want to see your improvement
and responsibility in handling your debts.
3. Notify all three major credit bureaus (TransUnion,
Experian, and Equifax) in writing on the 7th anniversary
of a bad debt or on the 10th anniversary of a personal
bankruptcy to clear your record.
