The Truth on How to Clean Up Bad Credit

Derogatory items on a credit report aren’t permanent. But infrequently they look like they are. What can be done? Is there a way I am able to raise my credit score and get back on good terms with financial institutions?

Yes, and it isn’t as hard as you could think.

First, let’s put this into perspective. There are about 100 million US people with derogatory items on their credit report that are severely wounding their FICO credit history. Most of these folks feel totally defenseless and haven’t a clue the way in which the system really works or what they can do about it. Most feel just like victims.

In addition, it’s critical to appreciate the system is intended to serve the financial establishments, not the people. Why do we say that?

Well let’s inspect how it works. For whatever reason at some specific point you decide that it could be a good move to borrow money. It could be a loan for an auto, some furniture or appliances, maybe a home or merely a holiday. Or, you accept an offer to get a credit card.

Things go well for a while and you make your payments on time or clear the loan. You have good credit. But then the unanticipated happens. A lot of things can go wrong, life happens. Sickness, loss of a job, divorce, or possibly an accident occurs. Too many times a bad investment, poor judgment, or perhaps a law suit leaves you with your fiscal situation turned upside down and no way to make your payments. Defaults are recorded and occasionally leans and personal judgments. So the credit agencies record the failure as a derogatory item.

The part that seems arbitrary is that when you get back on your feet and pay things off, the black marks still remain. The lending establishment may report the loan as paid, but nobody goes to bat for you and does a review to see that you have corrected the mistakes and then remove the insulting items. And if nothing’s done those things remain on your credit for years , in the case of judgments, even decades. It leaves you asking the query, “How do I clean up bad credit?”

There is an answer.

Get started cleaning up your credit today! Call 1-800-461-2860 for a free credit consultation with an experienced credit professional.

Getting Started With Cleaning Up Your Credit

The current economy amplifies the importance of having a clean credit report, particularly when the best rates for new home loans are usually only offered to those with a credit rating of 750 or above.

Not too long ago a credit score of 620 was considered good and anything above 700 was excellent; today’s definition of a good credit score is above 700 and an excellent score is even higher. Keeping up with the increasing standards of lenders leaves many Americans looking for a way to increase their scores.

The first step to cleaning up your credit is to order a copy of your credit report from all three major credit reporting agencies: TransUnion, Equifax, and Experian. You are entitled to a free copy of your credit report from each credit bureau once a year. Take time to thoroughly scan each report and not rely on your report from just one credit bureau, as incorrect listings could appear on just one report, and each report does not always report the same data.

After examining each credit report and noting the damaging items you feel are inaccurate, you can write a credit dispute letter to each credit bureau disputing the item, enclosing any evidence you have that the item needs to be updated or removed.

The credit bureau then attempts to verify the disputed item within 30 days by contacting the credit company in question. The information furnisher is tasked with verifying the listing. If they fail to respond (something that happens with regularity) or are unable to prove the listing is correct, the listing should be corrected or completely removed from your credit report. Keep in mind that the credit bureaus can add the information back onto your report if the credit company verifies the information even after the 30 days has passed.

Persistence Is Necessary When Cleaning Your Credit

Persistence, patience, and time are frequently necessary when working to clean your credit reports since it can take multiple letters to get the results you are looking for. It is because of this that many people turn to expert help from the many reputable credit repair companies operating today. In fact, Lexington Law, the leading provider of credit correction services for American consumers, reports that 40 of clients attempted to repair their credit themselves before enlisting the help of the firm.

Find out more about how Lexington Law can help clean up your credit reports.

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