Erase Bad Credit
No matter how messed up or bad you feel about your credit, I’m here to give you hope that this issue or challenge of yours won’t last if you follow these steps. You might have heard of so many stories of how bad some individuals’ credit are and how miserable it has made them become and you start to panic about yours. I can boldly tell you that most of these people affected by bad credit pass through bad times mostly because they don’t know the “credit game.” My intent of writing this article up is to save so many people from being tormented by bad credit and to let them know that there are steps to take to erase bad credit. I always say that if you know how to play the “credit game”, you will win.
One of the most vital numbers that has a significant effect on your entire life is definitely your credit score. This covers a wide range of necessities such as renting or purchasing a house, getting the dream job you’ve always desired and other necessary responsibilities. Your credit score has a great impact on either a rejection or an acceptance. You should bear in mind that it is quite easy for bad items to be recorded on your credit details, and getting this bad credit fixed or erased could be quite strenuous. Nonetheless, I’m going to give you some good tips that can help you get rid of bad credit on your credit report. These steps are easy to follow if only you are disciplined enough and well determined to erase bad credit. You can also seek a professional company such as Eneyvel’s Financial who can assess your credit situation and take you through the specific steps needed to fix or build your personal or business credit. Below are the steps you need to take to erase bad credit:
➢ First Step.
The first step to take in erasing any bad credit is to get a credit report free of charge. It is a legal entitlement for all to obtain a credit report without any attached fee from all the three main credit bureaus. This credit report can be obtained once in a year for free by going to www.annualcreditreport.com. Also, if you are deprived of credit for any cause or a harsh and unacceptable reaction was taken against you by a company, it is your legal entitlement to get a credit report. But unfortunately, most people do not actually know what is contained in their credit report, thus, they are unable to erase any bad report in their credit information.
➢ Second Step
This is where you need to really speak out if you are not clear with anything on your credit report. Whatever thing that you are not comfortable with or you think doesn’t appear right in your report should be disputed. Your credit report should be carefully monitored. There was a case of a young man that was brought to me, he was so infuriated that a debt that he has paid off was not captured as paid. Also, you may even discover a new account that you are sure of not being involved. These are some of the things you need to watch out for because most companies are only good at reporting the status of your credit when you are indebted to them and often ignore to report that you have cleared off your outstanding balances. Most credit bureaus present the options for you to counter any ill-activities against you. This can be done through telephoning or online.
➢ Third Step
The statute of limitation should be checked. One thing you need to know is that a certain period of time is given to collectors for a debt to be reported. Once the stipulated statute of limitations is past and they cease from reporting to the bureau, you can ask the bureau to take off the item from your credit report. Although the number of years is slightly different in each state, the average number is seven years. You need to take this word of caution I’m about to tell you very seriously: A debt you are owing may not reflect in your credit report. Do not ever assume that the debt has been paid off and so you need not pay for it. All that is required is for your debit company to put a single call through to the bureau and there will be a reversion of your debt to your report.
➢ Fourth Step
The time you paid off your debt should be properly taken into consideration. It is very possible that after you have cleared off a debt, it can still be seen on your credit information. This is very common with bankruptcies and judgments. At times, these items may still be seen in your credit details even after the time has elapsed. The only sure way to resolve these issues is by disputing them with the credit bureau so that the items can be removed from your credit history. For bankruptcies and judgments, most bureaus have the actual date of all the actions that was carried out.
➢ Fifth Step
A payment plan should be set up. I consider this as one of the most crucial steps of erasing bad credit. The genuine and tried way to erase bad credit is to try as much as possible to pay it off. After that, an actual credit plan can be created to build your credit score up. The easiest way to set up a payment plan or clear off a debt is simply by putting a call through to the company or organization that owns the debt. Majority of credit information will give a name and maybe phone numbers to the organization that is handling your debt. For some years, you may still see the debt on your report even when you have paid for the item. But do not fret over this because it definitely has no negative impact on your account and it will be cleared off after certain number of years as long as it has been paid off.
I have given you some important clues on how to erase bad credit, but it is worthy of note that the best option to erase bad credit is to avoid it from the start. Try as much as possible to pay for your bills in cash instead of depending on loans and credit cards that you will have to pay back in the long run. An in order to utilize your credit and keep it active, no more than 35% of the limit needs to be used. Specific credit building information can be obtained from a professional credit counseling company or by doing the research necessary.