Credit scores have become crucial for securing loans among other things in today's financial landscape, and paying all your dues in time is essential to maintain it. Although people make efforts to make sure their credit score remains above a certain level, it may be frustrating to find out that it isn't always as fantastic as one assumes it to be. This is generally caused by unfavorable things in your credit record that can be erased.
Dawn-Marie Joseph, the founder of Estate Planning & Preservation, says that having a good credit score has numerous benefits. It allows you to get the best interest rates on vehicle loans, car insurance, and even better mortgage rates. Brandon Robinson, president and CEO of JBR Associates, says lenders frequently provide better terms and cheaper loan rates to people who have good credit. Also, when looking for new employment, your credit score may be evaluated to determine how responsible you are. Hence one can take the following three steps to erase negative elements from credit reports.
Get in touch with a credit pro
A credit repair professional can help you remove unfavorable information from your credit report. These professionals are familiar with legislation such as the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), which govern debt collection and credit agency reporting. These credit repair pros can often find opportunities to eliminate bad items more successfully than the average person due to their extensive knowledge of collections and credit reporting. Furthermore, they are aware of the proper procedures for challenging these issues when there are valid reasons to do so.
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Dispute mistakes
Mistakes on credit records are becoming more common than ever. However, you have the right to a fair and accurate credit report. So, if you notice any flaws in yours, it's important that you question them. According to the Consumer Financial Protection Bureau (CFPB), there are some common errors one can watch out for.
Identity issues include wrong names, phone numbers, or addresses. They may also include accounts associated with someone with a similar name or those created as a result of identity theft.
These include closed accounts that are wrongly reported as open, reports claiming you are an account owner when you are only an authorized user and accounts that are incorrectly categorized as late or overdue.
These problems commonly involve inaccurate balances or credit limitations. The good news is that refuting incorrect information is typically simple. You may easily do this online with each of the three major credit reporting bureaus (Equifax, Experian, and TransUnion).
Goodwill deletion
Even if you are responsible for a negative action reported by credit agencies, you may be able to have it removed from your credit report via a "goodwill deletion." This is especially useful if you've missed only a single payment on an account you've had for a while.
Write a note to your creditor, explaining why you missed the payment and admitting responsibility. In the letter, highlight your track record of continuous on-time payments and your aim to continue the same. Request the creditor to delete the negative item for this, once. If they agree, the negative mark will be removed from your credit record.
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