The three major Credit Bureaus in the United States – TransUnion, Experian, and Equifax – have huge amounts of data about every single person in America who has ever taken a loan, a credit card, or any other line of credit. When you apply for an employment, a house loan, a car loan, or an insurance policy, the information you supply is reported to these credit bureaus, who record this information in the form of your credit score or credit report.
As these bureaus gather a large quantity of information, there are bound to be errors, omissions, misinformation, misreporting or misinterpretation in the credit reports. Any of these factors can cause bad marks on your credit history. You need delete these bad marks to enable you to have clean credit reports.
Disadvantages of Bad Credit History
Credit Repair is the way to delete bad marks on your credit history. Credit repairs also helps in optimizing your credit reports and scores. Remember, it is very important for your financial health to remove the bad marks at the earliest. With a bad credit history, erroneous or factual, you pay a higher rate of interest on any loans you apply.
If with a bad credit history, you pay 1% extra interest on a 30 year home mortgage of $100,000, this works out as $25,000! A single late payment on your credit report could cause this kind of loss!
Repairing Bad Marks on Your Credit History
Before you can fix a credit report, the first thing you need to do is to get your credit reports from all the three credit bureaus. Study them well and list out the errors and misinformation etc, if any. Write to the credit bureaus about these errors and they will investigate and correct your credit report.
If any favorable report is missing, such as a payment that has not been reflected, talk to the concerned creditor to sort out the discrepancy at the earliest. Once the errors and omissions have been corrected and a clean report issued, request the credit bureaus to send a copy to those who asked for your credit report in the last six months.
The long history of bad credit will take a long time to get deleted. But you need to work hard to get this corrected. Plan to pay all your bad debts and the current debts in time. Talk to your creditors to reschedule your payments. Credit cards have a habit of making you spend the money you do not have. Stop using them immediately.
If you start today, it may take up to seven years to delete all the bad marks on your credit history. But, it is the time to start your credit repair NOW!