Perhaps you have found something on your credit card that you do not believe belongs there. You want to do something about it, but you are not sure just what that something is. How do you fix an error that has wrongfully been made on your credit report? Who do you go to, what do you have to do yourself, how long will it take, and when, if at all, do I give up?
There are these questions and several more that are asked when people try to correct the mistakes that have been made on their credit reports. It can be frustrating and tiresome to correct any mistakes made by the credit reporting agencies, but it is a process that must be done in order to keep up the reputation of the credit holder. Here are a few steps to remember when going through that process.
The very first thing that you must do that many people neglect altogether is that you must actaully find the error made on your credit report. It is actually a very common thing to find an error on your credit report, but it is not so common for people to correct it, especially if it seems minor. This is because many people either simply do not understand the process by which they correct the mistake, or they do not want to go through that process because it is just easier to sit back and take it. However, even small mistakes can hold you back from getting the credit that you may need in the future.
A helpful tip you might consider is to circle or highlight the mistakes on your credit report. You may wish to copy it so that you can keep the original, clean copy for filing purposes. This is more helpful than it seems in the fact that you can locate the place in which the error is made on your report and refer back to it when inquiring correction from the credit reporting agencies.
The next step is one that many people also neglect. They may find errors on their credit report, but they do not take the time to actually notify the credit reporting agencies about those errors. Credit reporting agencies cannot keep track of all of the individual credit reports by reviewing everything that may be a mistake, call you up and ask if it's correct, then fix it themselves. You must notify them if you are to have any corrections made at all.
It is also important, when you come up with an argument about your credit report, that you have proof of the mistake. For the best argument, you need to have documented evidence that what is on your credit report is wrong, and that what you believe should be on there is honestly correct.
You must also be persistent. Check on the progress of the correction often. It is important to know that you are getting somewhere, rather than just simply being overlooked.
It's never a good idea to try to make a purchase on credit without knowing what's on your credit report. When you apply for most types of credit, the creditor will look over your credit report to make a decision about whether or not to extend credit to you. The last thing you want is to be speechless when a creditor or lender asks about something on your credit report. Before you apply for certain types of credit, you should check your credit report and attempt to reconcile any inaccurate or incorrect items on the report.
You should get a copy of your report from each of the three credit bureaus before you do any of the following things:
1.Purchase a car 2.Apply or get pre-approved for a mortgage 3.Complete an application for rental lease 4.Apply for a student loan from a private lender 5.Take out any other kind of installment loan
Lenders examine your credit history more closely when you make any of these types of applications. They want to be sure that you are not a significant financial risk to them if they should decide to extend credit to you.
What are the red flags that make a borrower appear to be a financial risk? One of the first things that will get you turned down for any of the applications listed above is a charged-off account within the past 24 months. It's worse if the charge-off remains unpaid. Most of the time, you will not be approved for a loan or credit with a charge-off on your credit report.
Unpaid collections are another factor that cause lenders to view an applicant as financially risky. While unpaid collections aren't as bad as unpaid charge-offs they can still cause you to be denied for an application. If the collection is not correct, you have the right to have it removed from your credit report. To avoid having to explain the situation to the lender, you should have the inaccuracy removed from your report before completing your application.
A history of late payments and high balances on accounts are also factors that cause creditors to look at you as a credit risk. Review your credit report to see if either of these issues applies to you. If you find that they do, catch up on your payments and reduce your balances to better improve the chances of getting your application approved.
Even if you feel fairly sure that your credit report only contains positive information, it is still recommended to get a copy for yourself before making applications in these cases. As the saying goes, "It's better to be safe, than to be sorry."