How to Handle Derogatory Credit Information in Your Credit Report

The derogatory credit information section in your credit report lists all the items that negatively affect your credit rating. It is this section that is given the most attention by creditors and lending agencies.

The most damaging types of credit information are bankruptcies and foreclosures. These items can be reported on your credit report for up to 10 years.

The second most damaging types of credit information are accounts that have gone to collections. Any account sent to collections affects your overall credit score in the worst way.

A collection account can stay on your report for seven years from the date of last activity In actual practice, collection accounts are often sold to another agency at the end of the seven year cycle, which creates another activity, which means the seven year reporting cycle starts all over again.

Other derogatory information in your credit report includes accounts that show a slow payment history and/or past due accounts. Unpaid student loans, judgments, and unpaid medical bills also show up here.

How to Handle Derogatory Credit Information

Derogatory information can be disputed when it is inaccurate. If, for example, you can prove you made a payment on time, when it has been reported otherwise, you should be able to have the error corrected.

Disputing errors is done by sending copies of your documentation to the credit bureau via certified mail. Once the agency receives the dispute, they must contact the lender for verification of accuracy. If the lender does not respond to the dispute within 30 days, the credit bureau must assume your dispute was accurate and remove the disputed item from your credit report.

A way to handle derogatory credit information in your credit reports when the lender will not remove it is to send a written explanation of the circumstances regarding the item. You are allowed by law to submit a 100 word explanation of the problem to the credit bureau, which then becomes a part of your credit report.

The derogatory credit information section in your credit report lists all the items that negatively affect your credit rating. It is this section that is given the most attention by creditors and lending agencies.

Bob Pering writes about credit repair, debt management and personal financing solutions. Special emphasis is given to the problem of derogatory credit histories in credit reports and what you can do to legally repair or erase them.

Visit my website at: http://BadCreditEliminated.com/ for tools, tips, suggestions and ideas on how you too can quickly improve your credit scores.

Buying a Car? First you need your Free Credit Report

Ordering your free credit report is probably the last thing on your mind when you’re yearning for a new car, but unless you’re going to pay cash for that new car, it is something you should do before you start to shop.

You know that at least 25% of all credit reports contain errors. Making sure that your credit scores aren’t being pulled down by some stranger’s negative information is reason enough to take the few minutes to order a free credit report.

If you wait until you’ve found your dream car to find out that your scores are low, one of two things will happen:

1. You’ll lose out on the car because even if the lender agrees to finance it, you won’t be willing to pay the interest rate offered. 2. You’ll go ahead and buy at a higher interest rate – and waste thousands of dollars in interest payments.

Correcting mistakes can take a couple of months, so you should get your free credit report just as soon as you start dreaming about that new car.

Along with a stranger’s negative information, your credit report could contain information that should have been removed long ago. Only a bankruptcy should still be showing on your credit report after 7 years, but mistakes do happen. So if you’ve had some financial troubles in the past, they could still be affecting your credit scores.

You could also find that one keystroke in error has reported your true debt as higher than it really is, or your available credit as lower. If you do any typing or data entry yourself, you know how easy it is to make an error.

But there’s one more reason why when you begin thinking “I need a new car” you should also be thinking “I need a free credit report with scores.”

It’s because not all car dealers are honest. You probably already knew that, but thought it applied to misrepresenting a car. It also applies to misrepresenting your financial picture, and thus the loan you’ll be offered.

If you don’t know your own credit scores, a car dealer can tell you anything. And if he’s in line to profit by you paying a higher interest rate based on your “poor credit scores” he’s apt to tell you what he wants you to believe.

Protect yourself from that kind of shady dealing by knowing your credit scores before you talk to a car dealer.

Article Source: http://www.approvedarticles.com

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Understanding the Critical Nature of Your Credit Report

Understanding the Critical Nature of Your Credit Report

Consumer credit reports are used today for far more than they were initially intended. Originally, credit reports were just that, reports that reflected how you were managing credit granted to you in terms of current balances, payments, etc. They were not originally intended to be used for other purposes, as they largely are today, yet most consumers are not aware of this important fact.

Now, though, consumer credit reports are being used for such things as determining your car insurance rates. Insurance companies claim people with low credit scores make more claims on their insurance, and they allegedly have all kinds of statistics to back up that bold statement, and therefore will charge you more for car insurance, regardless of your driving record, if your credit score is lower.

Many employers have made running a credit check a routine part of their standard background check before making offers to potential new hires. Again, it’s those statistics they obtain which allegedly show that people with lower credit scores do not take financial responsibilities seriously, and a low score could prevent you from getting a job you are well-qualified for.

Because of these new uses, as well as the original ones, you should understand that there are things that can make your credit report look bad, even if you otherwise have good credit. Here’s a few:

* Credit Report Errors: Errors can find their way onto your credit report, and unless you pro-actively find them and dispute them, they may never go away. Your credit report could include a charge-off that belonged to someone else, for example. This is not as uncommon as you may think, and in fact, many studies have shown that a majority of people do have errors in their credit report with at least one if not more of the credit reporting agencies.

* Other Information: Credit reports don’t just contain credit information. They also include employer information, salary information, and other non-credit specific information. If this is incorrect, it can negatively impact your credit score.

* Trend Upwards: From a financial perspective, your credit report displays the trend of how you manage credit. If you had credit issues a couple years ago, but have since cleaned up your credit act, your report will show a positive upward trend, and your credit score will reflect it.

* Pay Ahead: One of the worst things for a potential lender to see on your credit report is late payments. Even if you weren’t late with your payments, your credit report may still show as if you were. Here’s what might have happened. Your payment is due on the 1st of the month. You mail the check on the 25th, but it doesn’t arrive until the 31st or the 1st. And then, it isn’t posted to your account for another few days. That payment you made on time now shows as a few days late. The same can happen with electronic payments through your bank account. Though you may pay the bill the day before it’s due, it could take 3-5 days (or more, depending on both your bank and the creditor) before your payment is processed. Be aware that the date your payment is POSTED is the date they consider, and NOT the date that you made the payment. Make your payment earlier so you don’t get dinged for late payments.

Your best option is to obtain copies of your credit report from each of the three major credit reporting agencies: Experian, TransUnion, and Equifax. You are entitled to one free report each year. Review your reports, and make sure that everything listed there is accurate, and if it isn’t, start the dispute process as soon as possible.

By keeping an eye on your credit report, and doing everything you can to keep it as clean as possible, you’ll ensure that a high credit score is waiting for you, when you need it.

For more insights and additional information about how to correct errors in your Credit Report as well as getting free copies of your credit reports from all three major credit reporting agencies, please visit our web site at www.credit-help-center.com

Article Source: http://www.thecontentcorner.com

Buying a Car? First you need to check your Credit Report