The low number on a bad credit report can seem like a permanent blemish to many consumers. And when this number prevents borrowers from getting approved for a credit card, mortgage or car loan, the situation can start to feel hopeless.
Yet those with bad credit shouldn’t give up hope. There are many ways to go about cleaning up credit, and although it may take awhile for the results to show up, buyers will be happy they took the time to examine their report once they become a homeowner or drive off in a new car.
According to the South Florida Sun-Sentinel, borrowers should be sure to check credit reports from all three major bureaus – Equifax, Experian and TransUnion. For one reason or another, the scores at these different bureaus can actually end up being quite different. It’s up to the consumer to locate the discrepancies and negotiate with the bureau to get them removed.
Larger problems, like charge-offs or defaults, can stay on a report for up to seven years. Yet after this time has passed, many still remain on credit reports. It is the borrower’s right, by Federal law, that these can be wiped off a report after a certain time period has passed. Many times, they’ll have to take it upon themselves to contact the bureau and fix these errors.
Going over records from years back can be hard work, but the reward is worth it – a better credit report that will lead to big savings down the road.