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The Role of Credit Reports in the Process of Fixing Bad Credit

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Have you ever had access to your credit report? If yes, can you recall all the points of information about you? Adding on to it further, can you tell how important it is? This is what we are going to address in this article. Your credit report has almost every credit information about you. It lists out all the loans and repayment schedules you have followed.

But what is the significance of recording all that information? It’s to determine your credit-worthiness in the eyes of the lenders of a country. Anyone who lends you money goes through your credit report before choosing different terms and conditions on your loan. They sanction the loan only if you fulfill all the formalities. So, if you’re wondering how to fix your credit fast, here is the answer. 

Some frequently asked questions about credit reports and its relation with credit-worthiness

  • What are the reasons for bad credit?

Just as the purpose of a credit report suggests, your repayment schedule is on the top of the recorder’s priority list. The concerned authorities consider all your installments and the time at which you have paid them. All your loans, whether from a credit card or conventional ones, have a certain installment for every month. If you make any default in its payment, it can straight away go into your credit report. And that legitimate negative information cannot be removed from it. 

  • Can you do anything about that negative information?

That is where the process to fix bad credit comes into the picture. As mentioned above, genuine negative information cannot be moved. However, anything inaccurate that you might notice in your credit report can be removed. You just have to follow some formalities to file a dispute. It might take a month or more to get your credit report on the right track. 

  • What happens if that negative information stays on for long?

It seems very obvious that any lender would want to strike a balance between risk and return. That is what they do, as well. If your credit-worthiness is not visible, they will charge a high interest rate to cover the risk of non-repayment. And there is a flip side to it. The better the credit score you have, the lower the interest rate will be. Also, there are some formalities to sanction the loan. For bad credit scores, these formalities will be higher in number, and it will delay the sanction of loan. Consequently, the desired amount might not be sanctioned for the loan. 

  • How do you get access to your credit report?

You can order a free credit report from the credit bureaus of your country. However, you cannot misuse this privilege by requesting a statement every now and then. Request the report only once in 12 months; otherwise, your credit score can deteriorate even further. 

  • Can anyone take action against you because of some negative information in your credit report?

Yes, the lender is in a position to take adverse action if you have made any difference in your installment. You will be notified in case that happens. However, you can request another free credit report that you are entitled to in the next 60 days. However, you might see those defaults in your credit report straight away. 

  • How do you remove the inaccurate negative information?

The accurate and genuine negative information will fade away with your healthy repayment habits. However, anything inaccurate can be disputed immediately. Consult a professional Credit Repair agency. The formalities include the following steps. 

  1. Send a letter to the credit bureau that contains specific information. 
  2. The information includes your name and address.
  3. Everything that you are disputing against. 
  4. Copy of the documents that support your claim and position. 
  5. And a request that any inaccurate negative information will be corrected immediately. 
  • What’s the expected result of dispute filing?

Following these steps, you might hear from the credit bureau within 30 days. They can either support your claim or call it as invalid. They will provide some relevant information after they review your dispute. They have to provide those results in writing along with a free copy of your report with the changes. 

Now you are in a position to file a dispute against any unfavorable information in your credit report. Make sure you have the backing of a professional who has already handled such cases before. So, if you’re wondering how to fix your credit, this is the fastest trick to do it. 

Source: on 2020-04-09 15:07:30

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