What Can You Do About Past Bad Credit

Category: Finance, Credit.

This is the foundation of obtaining a great score.

We can work on that. If you re going to have bad credit, its best for it to be past bad credit. The one thing you have to do is make sure of is that your current debt and bills are being paid on time. I ve seen people who pay their mortgage and car notes religiously. You can t forget ANY bills, even the$ 15- $20 bills. But when it comes to their miscellaneous debt, they put it off or forget.

Not entirely a true statement. They rationalize that if the bill is only$ 15 it doesn t affect them as much as their mortgage. Yes the mortgage may weigh more when considering a person s credit mix, but guess what? So, its vital that you pay all debt on time, small and large. A 30 day missed payment is just that, a 30 day missed payment. OK, we ve got your present debt in check.

Plenty! What can you do about past bad credit? This discussion makes the assumption that you ve pulled all three of your scores and reports. First and foremost, check to be sure that the accounts listed are even yours. Look at the reports. You d be surprised to know that some accounts appear on your file that aren t even yours.

These would be the second group to attack/ dispute. Are there any negative accounts that have been paid and are 7yrs old or more? Here s a tip. How? Even accounts 7yrs old that HAVE NOT been paid could come off through a dispute. Most companies only keep records for 18- 24 months, which is why that time span is so important. Take notice that just because the account no longer appears on your file, doesn t mean that the debt isn t still owed.

An account that old may not be able to be verified, therefore must come off the report. It just means your score will benefit from it coming off. That would be fraud. Now, we re not going to lie and say the debt isn t ours. What you can do is write saying you re not sure about the debt amount listed or/ and the late payments associated with the negative accounts. Another way to make your payment history better is to do the opposite of what we ve just discussed.

If they can t be verified. they should come off! Instead of trying to take information off your file, simply add( good) accounts to your credit file. What you want is for them to add you to one of their good paying accounts. Maybe you have a family member or close associate who can help you out with this strategy. It can be a credit card, or whatever, store card. What this does is instantly add a good payment history to your file, thereby increasing your credit score.

As long as the account is in good standing and reports to all three major credit agencies. One other thing to be aware of when using this technique is the liability factor. An authorized user has the right to access the account but will not be held liable for delinquent payments. If possible, be added to the account as an authorized user and not a joint user. A joint user will not be so fortunate. Persistence is the key to making this strategy work. If the account doesn t ask for the secondary user s social security number, then they may not report the account to the additional user s credit file.

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