Common Problems and Solutions Regarding Credit Report
What is a Credit Report?
A credit report refers to the comprehensive and detailed report of your credit history which is prepared by a credit bureau. That information in your report is used by credit bureaus to create credit reports. Lenders on the other hand, if you plan to apply for a credit, will use the details of the report to identify your worthiness as a debtor.
Equifax, Experian, and TransUnion are the three major credit reporting bureaus in the United States. They collect your significant personal details as well as bill-paying habits to create a unique credit report.
Furthermore, problems and errors may still occur in your credit report. So take note of these common errors and know how to fix them:
Records of late payment on my credit report.
Problem: You don’t have to worry so much if you only have one or two late payments in your credit report. However, if your report shows a lot of late payments, then you will really have a hard time to prove that you’re a credible and reliable person. It will be difficult for you to convince a creditor that you’re capable of paying a debt.
Solution: As much as possible, make sure to maintain a good credit history to avoid hurdles in the future. To have peace of mind, you’re free to ask a copy of your credit report once in a year to monitor the flow of your credits and payments.
Unpaid collections on my credit report.
Problem: Your credit score is highly affected and can fall badly because of some unpaid collections on your credit report. Such collections may include parking tickets, traffic violation tickets and fines, cell phone bills, or utility bills.
Solution: Fortunately, you can easily settle this kind of mistake because right after you pay such debts, you can immediately ask the creditor to remove the collection notice on your credit report. Furthermore, unpaid debts which involve formal agreements such as credit cards and loans are hard to eliminate in just a short span of time. So pay close attention in paying all your debts on time.
There’s a lot of late payments on my credit bureau.
Problem: You may have a lot of late payments on your credit report. Can you fix your credit score? Unfortunately, there’s no lawful method of fixing it quickly.
Solution: Yet, the best recourse to repair such damage is to exhibit consistency and honesty in paying your debts for the next few years as per agreement. In the long run, your credit score will progress. Your late payments will eventually disappear from your credit bureau report after six or seven years from the date of late payment.
A lot of problems may continue to occur on your credit report and can drag down your credit score. Sometimes even if your personal information is accurate, mistakes can still arise. You can fix simple errors yourself, yet when it comes to complex ones, you seriously need a credit report attorney to guide you through the legal way of repairing it. Especially, if a large amount of money is involved and your accounts are at risk.