subject: Credit History Repair [print this page] Author: Kenny Wright Author: Kenny Wright
Every now and then we desire to change our credit score for the better without knowing how to do so but the knowledge of the basics can solve this problem which includes finding out the people who are in charge of your credit history,what their main intention is and possibles getting to discover whether there are rules guiding these procedures.1.The CRAs compile your credit history to create a product that the creditors will buy. Neither the creditors nor the CRAs care about how the information on your credit report can affect you. It remains entirely up to you to take up the challenge of cleaning up your credit report and portraying a better image of yourself to your creditors.2.A major chunk of negative items on your credit report is actually incorrect or incompletely reported information. The FCRA regulations allow you to annually review your credit report to look for such errors and subsequently dispute them. Moreover, you also have the right to know whenever some negative information gets reported to your credit report. Now the most important habit that you need to pick up on is to keep a track of all the negative information reported to your report. This includes all the late pays, charged off accounts, accounts with outstanding balance owed and inquiries placed by any creditor. When you are successfully keeping a track of all such information, you can dispute any misplaced item on your credit report effectively and with documented proof. Effective disputing can be tricky, but only once you start practicing it will you learn how to clean up credit.3.Not all of this negative information reported is actually damaging to your score. Accounts that were due earlier but which you have now paid for example, actually count as payments made and so contribute towards your score building. Similarly, charged off accounts (accounts with bad debts) are actually closed accounts and so only minimally hurt your credit score. On the other hand, accounts placed for collections can be a sore spot on your report, as not only do they count as outstanding credit balance, but also can lower your score because debt collectors can place an inquiry on your report.4.The things that create most damage on your report are: account placed for collection,late car payment and credit card dues.Invariable try to remove items that course more damage in good time first.5.All derogatory information remains on your credit report only for a specified period of time. This is seven years for most outstanding debts placed for collections, while up to two years for any inquiry. Newer items hurt your score the most and continue to do so for the longest period of time. That is why you should again be prioritizing on recent items first and then only coming to more chronologically distant negative items.the issue of one size fit all does not applt to credit repair as it is up to you to totally decide on how best to clean credit.The most intellegent way to go about clean credit is to eliminate the most damaging items first. About the Author:
