How To Deal With Credit Report Issues

How to deal with credit report issues

Are you still thinking about how to improve your credit report history? If you are facing an issue of a bad credit score, and it is affecting your personal life or business don’t just spend your hard-earned money on any credit repair program. Credit repair takes time and education to fix the issues that are negatively hurting your credit score. There are some steps you can take for improving your credit score.

Things you need to know for improving your credit report history

You may have heard about credit repair services and be wondering if they can help? But be careful about these types of businesses. They might tell you they can remove anything negative from your credit report and that your score will improve immediately when in fact that is not the case. You can improve your credit score by reviewing your credit report on your own.  

Related: What Is A Good Credit Score?

Credit reports

How to deal with credit report issues
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What is a credit report?

Your credit report mainly has information about the following things:

  • Personal information- name, address, and social security number
  • Bills history- whether you pay your bills on time or have missed payments.
  • Loans and credit card history- what credit cards and loans you have, and also what you owe on them.
  • Bankruptcy- whether you have ever been sued or arrested or have filed bankruptcy. 

Note that the more positive and accurate information you will have in your credit report, the better your credit score will be. 

The Credit reporting bureau sells the information in the credit report form yours to the employers, creditors, insurers, etc including other businesses that use it for making decisions about you. 

If your credit history report has a lot of negative information then you could face problems. You could have problems in getting loans, or you have to pay more interest. You could also be turned down for insurance, a job, credit cards, apartments, or other services. 

Check your credit report for free here

How to know what is in my credit report?

Once you access your credit report look through all the information that is provided from all three of the major credit bureaus, Experian, Equifax, and TransUnion. Make sure you check your personal information, review any accounts that are listed, and review any collections, foreclosures, bankruptcy, or missed payments.

Related: Best Rental Credit Checks For Landlords and Tenants

How long does negative information stay on my credit report?

Even the most negative information on your credit report will stay for up to 7 years. The negative information from bankruptcy will stay for 10 years maximum. Judgments against you that are unpaid will remain for 7 years. It can also stay until the statute of limitations runs out. Whichever is longer among both of them.

In certain situations, there are exceptions. Like if you are seeking a job paying more than $75,000 a year or loan or insurance valued at more than $150,000. A credit reporting bureau will also include older credit reports that would be showed. 

After 12 months, every nationwide credit reporting bureau should provide you a free credit report copy if you ask for it. 

Can I get negative information removed from my credit report? 

Yes, if the negative information on your credit report is not accurate or the statute of limitation runs out you can get these items removed. However, if there is negative information on your credit report and it is accurate, the chances of getting this item removed are slim.

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If I notice a mistake on my credit report?

You can correct the mistakes and outdated information on your credit report without any cost. Both the credit bureau and the business providing you information are responsible for correcting it. 

But always make sure that the information in your report is accurate, up to date, and complete before you apply for a loan. 

Related: How To Get A Loan Online With A Bad Credit Score

What If a company takes negative action against me?

You will get another free credit report if a company takes adverse action against you. You can ask for a credit report within 60 days after getting notified of the action. The company will send you a notice that will include your name, address, and credit bureau phone number that provided you the report.

A free credit report is provided if: 

  • You are on welfare
  • Because of fraud or identity theft, your report is inaccurate
  • In 60 days you are planning to look for a job 

Disputing mistakes on my credit report

For getting all your rights and advantages contact the credit bureau and the business that reported all the information. 

Sending a letter to the credit bureau

While sending a letter to the credit bureau you should note that your letter should include the following things:

  • Your correct and complete name and address
  • Each item you are disputing and also the reason
  • Copies of documents that support your position (don’t send the original)
  • Mistakes should be corrected or removed by giving a request

You might also want to enclose a copy of your report and also circling the items in question. Also, send your letter by certified mail so it can get a return receipt and you can have a record with you. Keep the copies of every detail you have sent. 

Get Your Free Dispute Letters Here

Free Credit Dispute Letters Blueprint

How soon will you hear back from the credit reporting bureau?

The credit reporting bureau has to first investigate the items you have questioned within 30 days. The credit reporting bureau will provide you with all the information you gave about the error to the business that reported the information. Soon after the business is notified it will review and investigate the relevant information. They will then report the results of the information back to the credit bureau. 

What can I do if the investigation doesn’t find any mistake?

If the investigation doesn’t resolve your issue then you can ask for a statement. You can also ask the credit bureau to give your statement to someone who has a copy of your report in the past. For this, you have to pay to credit bureau to do it. 

How to improve payment history on credit report?

If you have missed payments on your credit report you can possibly get them removed to improve your payment history. Payment history makes up most of your credit score so improving this would be well worth your time.

Go back through your payment history on whatever payment has been missed to double-check that the missed payment is correct. If you find that you did miss a payment you can call the lender and ask to get it removed. Not all lenders will remove missed payments especially if you have multiple missed payments but in some circumstances, they will remove them.

Reasons Lenders Might Remove Missed Payments From Your Credit Report:

  • Proof – If you can show the lender proof that you usually pay all your bills on time and just made a mistake this one time.
  • Not your fault – If something happened that wasn’t your fault such as an issue with your auto-payments, bank error, fraud, or any other reason that wasn’t your fault. Make sure you have proof
  • Hardships – you experienced some kind of hardship such as a death of a family member, hospitalization, or natural disaster
  • Offers – You can offer them something in return such as paying off the loan or debt you have missed.

Related: What Happens When You Don’t Pay Your Credit Card Bill?

What is a good credit history length?

A good credit history length is considered to be around seven years. Generally, the longer your credit history is the better off you will be. After seven years, negative items start to fall of your credit report which can greatly improve your credit score and ability to apply for loans, credit cards or a mortgage. Make sure you keep your accounts open and always pay your bills on-time.

Related: All You Need To Know About Your FICO Score

How can I improve my credit score?

Improving credit takes time but you can also rebuild your credit by paying bills on time and paying off debt. If you are in a debt and need some help then a credit counseling organization can help you. Good credit counselors spend time discussing your financial situation.  They will come up with a personalized plan for solving your money problems.

You can also sign-up with BillShark to help lower your bills and cancel subscriptions you no longer need or use.

Related: The Easiest Ways To Increase Your Credit Score

Do you have bad credit, no credit, or want to learn how to become a credit expert?

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  • What your actual credit score is
  • How to get a copy of your free credit report
  • How to get your credit back on track today
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