What To Do About Negative Information In Your Credit Report
Below is a MRR and PLR article in category Finance -> subcategory Credit.
How to Handle Negative Information in Your Credit Report
Understanding Your Credit Report
Negative information on your credit report can stay for several years. Most negative details last for seven years, while bankruptcies can remain for 10 years, and unpaid tax liens for 15 years. Information about lawsuits or unpaid judgments is reported for seven years or until the statute of limitations ends. Inquiries remain for two years.
Your Rights Under the Fair Credit Reporting Act (FCRA)
If a credit report results in denial of credit, housing, insurance, or employment, the provider must give you the contact details of the Credit Reporting Agency (CRA) that supplied the report. Under FCRA, you can request a free report within 60 days if denied credit based on it.
Correcting Inaccurate Information
1. Contact the CRA and Information Provider: Reach out to both in writing if you find inaccuracies.
2. Investigate and Correct: The information provider must investigate and report back to the CRA. If errors are found, corrections must be made across all CRAs. If unresolved, your dispute statement should be included in your file.
Improving Your Credit Report
If the information is accurate, improving your credit requires time, effort, and a debt repayment plan. Beware of credit repair companies that claim they can erase bad credit for a fee.
Credit Repair Organizations Act
Credit repair companies must fulfill several requirements:
- No payment before services are completed.
- Provide a copy of "Consumer Credit File Rights Under State and Federal Law" before any contract is signed.
- Offer a written contract outlining your rights and obligations.
- Allow three days to cancel without fees.
Caution Against Fraudulent Practices
Some companies might promise a new credit identity. Using false information for credit applications, such as fake Social Security numbers or fraudulent loan details, is illegal and can lead to charges of fraud.
If You're a Victim of a Scam
If you've been scammed by a credit repair agency, contact your local consumer affairs office or the National Fraud Information Center for assistance.
You can find the original non-AI version of this article here: What To Do About Negative Information In Your Credit Report.
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