Credit Repair
- What information is on my credit report? How does it get there?
- Your credit report contains the history of nearly every loan, credit card, or credit extension you have ever had. It will show the type of loan, maximum amount allowed (most you can borrow from the account), payment history, and current amount due. It will also show information from public records such as judgments (child support, court claims), IRS liens, bankruptcy filing, and foreclosures. Your credit will also show every company that pulled your credit in the past two years (called an inquiry).
This information is usually reported by banks and credit card companies who report to credit bureaus. Some debts are reported by collection agencies (usually unpaid phone, cable, utility bills) - How long will information remain on my credit report?
- Federal law requires that any negative remark be removed, upon request, after 7 years. If you don't ask it will remain forever
- How do I get information removed from my credit report?
- If you find any information on your credit report to be incorrect, misleading, or any negative remarks that have been on your report for an extended period of time. You can ask the credit bureau in writing to investigate the information. Under federal law the bureau must investigate and get back to you within 30 days. If the bureau doesn't report back the item must be removed.
- What affects my credit?
- Here are some things that can improve your score:
- Few open credit lines with low balances
- Installment loans that are paid on time
- A history of living in the same address
- Owning a home
- Late payments
- Bankruptcy
- Foreclosure
- Too many inquiries
- High credit card balances
- Too many revolving credit card accounts
- Can I get a loan with bad credit?
- Depends on the type of loan. Unsecure loans which are bank or credit card signature loans usually require good credit. However, secured loans such as mortgages and car loans are more flexible. Reason being is that secured loans contain collateral. If you default on the loan they will seize the car or house.
TIPS
- Giving credit card companies an unlisted address can end up on your credit report
- Try not to open too many accounts
- Bring a copy of your credit report when shopping for a car loan
- Dealers may run your credit multiple times leaving many inquiries
- Do not pay off and cancel all credit cards
- Companies view people with empty credit lines as suspicious.
- Don't roll balances from card to card
- Although this is a easy way to lower interest rates. Every time you apply for a new credit card your credit is pulled. Which in turn can lower your credit score.
- Get a copy of your credit report
- Mistakes often show up on peoples credit unexpectedly. It's a good idea to check your credit score at least once a year.
