If you presently have bad credit history, it does not need to be a lasting problem. Since any one of us can be suffer from bad credit due to a loss of job, sickness or other unfortunate circumstances, we need to be always prepared to take the necessary steps to regain good credit standing. IN this article, let’s discuss positive steps that you can do to improve your imperfect credit.

On Credit Report Errors

In many cases, errors in a credit report can pull down an individual’s credit score. These errors can be a result of inaccurate reporting from one of your creditors and sometimes the credit reporting agency may have committed the error. Unauthorized charges made in your account can also badly affect your personal credit rating. So, how can you resolve the problem?

The FCRA (Fair Credit Reporting Act) gives all consumers the right to dispute errors in their credit reports. The proper way to dispute an error is to send a letter to the credit reporting agency that issued the report. You may need to wait up to 30 days for the investigation to be completed before the items in your report can be corrected.

If the complaint is found valid, the credit reporting agency will send the complainant a letter explaining the result of the investigation along with an updated copy of his/her credit report at no charge. The credit reporting agency that conducted the investigation will also contact the two other credit bureaus to inform them about the corrections made. This is why consumers are advised to order a copy of their personal credit report once every six months or before applying for new credit (loan or credit card) to ensure that it contains accurate information.

On Debts Assigned to A Debt Collection Agency

If your debts have been passed on to a debt collection agency, the details will also be reflected in your report. If these are truly your debts, then it’s best to pay them off. However, the account may still appear in your report and can send a negative impression to future creditors. Levitra What can you do? Instead of waiting for seven years for the negative items to be deleted from your report, request your original creditor to prompt the credit bureaus to delete those records from your report.

On Managing Credit Card Accounts

To easily build up your credit score, you need to maintain at least two active credit card accounts. Use your credit cards regularly but make sure that you can pay your debts on time. Keep your monthly charges minimal so you can pay in full and avoid the interest rate fees and protect your credit history at the same time.

On Managing Loan Payments

Managing an active loan under your name is a good way to rebuild poor credit history. By submitting your monthly loan payments on time, you can show future creditors that you are credit-worthy and that you deserve a good deal. After at least six months of timely loan payments, you should be able to see an improvement in your credit score. Keep it up until the end of your loan’s terms and you will surely regain good credit standing.

Author Bio: Elizabeth Roberts is a freelance writer and loan consultant. The website BadCreditResources.com offers resources that specialize in providing bad credit loans and credit cards for bad credit.

Category: Finance/Credit
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