Is it easy to fix a bad credit rating?
A bad credit rating can do a number of things to you. First of all, it can keep you from being able to acquire new credit such as credit cards, loans, and even mobile phones. You may also find yourself in a position in which an employer may look at your credit rating. They do this to measure trustworthiness. This isn’t saying that you are not a trustworthy individual. Some of the most reliable people in the world have the occasional mishap, but this goes to show that your credit rating is very important in determining your future. Landlords even look at your credit file to ensure you do not have unpaid rent with anyone else. So even finding a place to live can be challenging.
These are reasons why you need to fix your bad credit rating. But how do you do that and how hard is it?
The first thing you need to do is acquire a copy of your credit file. This is so you can review the information on the file and see what is legitimate and what isn’t. Any information that is not legitimate needs to be disputed. That dispute information should be made available to you on the file. However, you need to contact the credit provider who listed the incorrect information. You need to ask them why the information is there and if they can remove it. If they remove it, you will see the change in 5 business days. If more information needs to be acquired, it could take up to 30 working days for the situation to be resolved.
Once those items are removed, you will see a difference in your credit rating because those items are no longer working against you.
As for valid items, that takes a little more work. If you have defaults on your credit file, those remain for a period of 5 years, even if you pay off the debt. Bankruptcies and clearouts remain for 7 years. There is not really much you can do about that. However, bringing your defaults current will reflect on your credit file. If you make consecutive on time payments, this will improve your credit score. Eventually, the good will outweigh the bad.
You may also choose to employ the services of a credit repair agency that can help you get rid of those erroneous items on your credit file. As for how long this will take, it generally takes 35 days, but it could take longer. It is hard to put a time frame on that. But now you can see that credit repair can be both easy and hard. It can be as easy as contacting your creditor and as hard as paying your bills on time. It simply depends on what route you take. How long it takes can also have an impact. It could take a month or it could take a year.
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