Consumers have the right to sue credit bureaus and creditors for inaccurate information which, as soon as it is challenged, is not investigated and, if justified, withdrawn. Let`s start with the brutal truth. If there is a specific collection account in your credit reports, you are unlikely to be able to withdraw it before it is available for the maximum time allocated – seven years from the date of the initial default date. Unfortunately, the collection company may go to the Court of Justice to apply for a CCJ a few months before the six-year period expires. If granted, you will receive one calendar month to pay off the debts before the CCJ is added to your credit report, resulting in an additional six years of credit-related pain. Although this is not always the case, a CCJ has a continuous effect long after the initial default has disappeared. This service is totally free and can increase your creditworthiness quickly by using your own positive payment history. It can also help people who have poor or limited credit situations. Other services such as credit repairs can cost you up to thousands and only help remove inaccuracies from your credit report. Learn more about your collection and credit reporting rights in this helpful guide. If you want to build your credit history, a credit card can help you show that you are now a more responsible bet when it comes to lending.
Just use it for small purchases, then make sure you pay the balance every month to avoid paying high interest fees, and it will soon help you show that you are able to manage your finances. However, what you need to keep in mind is that paying for deletion with a debt collection company cannot remove negative information about your credit history that was reported by the original creditor. The creditor may argue that his contract with the collection office prevents him from altering all the information he has reported to the credit bureaus on behalf of the credit bureau. Nevertheless, some collection offices take the initiative to request the removal of negative account information for clients who have paid all of their collection accounts. With the recent end of the annual voters` list update, it is important to ensure that your voter roll information has been correctly added to your credit report. This question was asked at a recent Periscope meeting organized by the Iisafern. Don`t assume that negative information has been removed from your reports. Ask for new copies of your credit reports and check for yourself.
Yes! One of the good things about your credit report is that negative information is erased after a certain period of time so you can rebuild a damaged credit history. Positive information usually stays longer in the credit report to give you credit for payment on time. So if a closed account is deleted, it depends on its account history. There are still lenders who are willing to lend to defaults – different lenders have different criteria to mark your credit report. While traditional lenders might consider the existence of a default to be too risky, there are specialized lenders (subprimes) that have been created to deal with this end of the market.