How to Clean Your Credit Report Fast?
We've all seen and heard the ads that target individuals with bad credit; "Have bad credit? We'll approve your loan fast no matter what your credit history". What these ads neglect to mention is that you don't have to be labeled a "bad credit risk". Their goal is to get you into a high interest rate loan so they can make as much off of you as possible. This leaves those with less than stellar credit believing that bad credit is just something you must live with, along with the consequences that go along with having a poor credit score. For sub-prime lenders, targeting consumers with low credit scores can be profitable business for them, so they don't want you to know that you can take action to improve your credit score.
Many Americans believe bad credit is like your crazy uncle you just have to put up with. The FICO® Score uses a formula that takes into account several factors with the largest share, 35%, being your payment history. Therefore, if you were negligent in paying bills on time, were not able to make your minimum credit card payments, or lost your job and fell behind on your mortgage payments, they believe you will have to bite the bullet and accept your poor credit score until enough time has passed.
The 7 year rule applies for most negative information that is listed on your credit report. Late payments of bills and credit cards, collections, civil claims, and foreclosures can be on your credit report for up to 7 years. For bankruptcy, the listing can stay on your report for 10 years. That is a long time to just sit back and wait for the grey skies to clear. And while you are waiting, you are likely paying hundreds to thousands of dollars extra in interest charges that may have been avoidable. Don't let lenders fool you into believing you are stuck. Acknowledge that you do have control over your credit report and then take the appropriate action to improve your credit score so that you will be the one in control of your financial well-being.
You can start restoring your credit today by paying all bills on time, keeping credit card balances well below the maximum limit, and not missing any payments. Even if you are dealing with the 7 year rule, the FICO® Score gives more weight to recent problems and less weight to older issues. Therefore, starting good practices today will benefit you within a short amount of time.
When reviewing your credit report, you will likely find that there are negative listings pulling down your score that you don't feel should be there. Studies have shown that over 75% of credit reports contain inaccurate information. The Fair Credit Reporting Act gives you the legal right to question any information on your credit reports that you feel may be inaccurate, untimely, misleading, incomplete, ambiguous, unverifiable, biased or unclear. Rest assured, you can confidently and legally fight to clean up your credit report.
The most common means of fighting these questionable listings is through sending letters to the credit bureaus that are reporting the negative information. But that is just one of the many options you can use to clean up bad credit. Lexington Law's credit repair services include credit bureau disputes along with goodwill interventions, debt validation requests, and a number of addition services designed to help clients make the most of their credit score.