Clean Bad Credit, Learn How In Five Minutes.
It is easy to clean bad credit. In this article I will show you how.
It can be very hard and costly to receive a mortgage, auto loan, credit cards or other credits if your credit score is poor. You can clean bad credit and this will save you a lot on payments and interest rates.
* Late payments are detrimental to your credit. Payment history will do the most damage to your credit. It is very important for you to make payments on time to clean bad credit.
* The second most important to clean bad credit is to pay down your balances, start with paying off the most recent accounts first. The older accounts do not have as much effect on your credit report scores as the newer ones do.
* Acquiring new credit can drop your score also and more so if blemishes already exist on you report.
* Creditors can change how the report is worded. Send them a letter asking them to change the wording. “Seriously Late” would be changed to “Slow Payment” and so on. Keeping in contact with creditors and staying in decent terms with them will go far in them working with you to assist you to clean bad credit.
If you follow the above steps and are persistent you can improve and clean bad credit report scores. It will take a little time but it will be well worth it in saving money on interest rates and payments in the near future. Also there are often errors on your credit report. Now let’s take a look at the actions needed to get these off of your credit report which also will clean bad credit.
* An erroneous entry to your credit happens often and can hurt your scores. If you notice any errors you need to make a copy of the report and highlight these. Send this with explanations to the credit agencies and to the account creditors. Send by registered or certified mail. They have forty five days to reply. If they do not, send them a letter and refer to section 602,4b of the Fair Credit Reporting Act. Simply sending some letters can clean bad credit scores.
* Most people are afraid to send these letters because they think the creditors will have the records to back their claims. Actually only a few keep good records. Records are kept for only 13-18 months for most of the credit card companies. And with the many bank consolidations in recent years, a lot of these companies have failed to acquire records from acquisition companies. You can greatly clean bad credit by sending these letters.
* You should receive a free corrected credit report from the bureau according to Section 611d. If not then send a letter.
Also you are allowed to add a one hundred word statement to your credit file. This would be a good way to explain why there are problem areas in your report, layoff, illness, etc. This is easy and free.
If you are diligent in taking care of your finances, be proactive on late payments, pay down accounts and dispute erroneous entries you can increase your scores. Allowing time and being diligent will go a long way in your effort to clean bad credit.
After losing his job, his car, and his home, Alex Nebwalz didn’t give up. He fought hard to regain his life and his credit. Now, after 2 1/2 years he has repositioned himself and talks about it at his website cleaningupcredit.netwhere he writes about how you can improve your credit report, get mortgage loans for bad credit, the poor credit auto loan and how to clear bad credit.