Improving Your Credit Rating and the State of Your Report by Removing Collections and Charge-Offs
Surviving in today's economy is no easy task, especially if you want to maintain a healthy slate on your report on all your financial activities.
It is a wise idea if your file can be in a good state all the time.
If on the contrary the present status of your credit report isn't impressive, there are a few things you can do to put it in a good state.
Collections and charge-offs happen to be common negative entries that are found on people's files.
Invariably, what this means is that some people are in the habit of not keeping their agreement to loan terms thereby forcing creditors to sell off credit accounts to debt collectors.
This puts negative information on your files and also lowers your score.
Instead of folding your arms and thinking it will go away (collections are required to spend 7years on a file) an advisable thing you might want to try is disputing it.
What if you're not responsible for the bad entry? Considering that about 80% of all reports in the country have errors in them, there is an increased possibility that this might be the case with your file too.
An easy and proper way you can remove a collection or charge-off from your file is to dispute it with the reporting agency that has it recorded in their own version of your file (if it is reported only on your Experian, then you'll dispute it with Experian alone so long as that particular account is not reported on your Transunion and Equifax).
Collection removal is only one step in the right direction of improving your rating.
However, you should consider a complete restoration of your report if you're yearning for a good score and rating that can get you any type of loan you might need in the near future.
Try either the do-it-yourself method which you'll need a restoration kit for guidance, or the services of a professional credit repair agency.
It is a wise idea if your file can be in a good state all the time.
If on the contrary the present status of your credit report isn't impressive, there are a few things you can do to put it in a good state.
Collections and charge-offs happen to be common negative entries that are found on people's files.
Invariably, what this means is that some people are in the habit of not keeping their agreement to loan terms thereby forcing creditors to sell off credit accounts to debt collectors.
This puts negative information on your files and also lowers your score.
Instead of folding your arms and thinking it will go away (collections are required to spend 7years on a file) an advisable thing you might want to try is disputing it.
What if you're not responsible for the bad entry? Considering that about 80% of all reports in the country have errors in them, there is an increased possibility that this might be the case with your file too.
An easy and proper way you can remove a collection or charge-off from your file is to dispute it with the reporting agency that has it recorded in their own version of your file (if it is reported only on your Experian, then you'll dispute it with Experian alone so long as that particular account is not reported on your Transunion and Equifax).
Collection removal is only one step in the right direction of improving your rating.
However, you should consider a complete restoration of your report if you're yearning for a good score and rating that can get you any type of loan you might need in the near future.
Try either the do-it-yourself method which you'll need a restoration kit for guidance, or the services of a professional credit repair agency.