Things To Do If You Have A Negative Mark On Your Credit Report

If you happen to fall under the below situations due to your past financial irregularities, and it’s been listed on your credit report, it’s very unlikely that you’ll be unable to get it removed.

• Late payments
• Repossessions
• A Foreclosure
• A debt that’s been sent for collections
• Charge-offs
• A bankruptcy (chapter 13)
• Defaulted student loans
• Paid, released, withdrawn tax liens

These are some of the money mishaps that can stay on your credit report for up to 7 years, eventually hurting your credit score. However, there are a few steps that you can take in keeping the damage caused to your credit score to a minimum.

First, pay off your debts as much as you can, in case you find that it’s the unpaid debts that are dragging your credit score down, and you’ve the money to pay it off. Contact your lender and make arrangements to settle the debt. Though this won’t eliminate the remark from your credit report instantly, you might be able to convince your creditor to contact the credit bureaus to notify them that the debt is paid off. It’s isn’t the best shot, but it’s giving a try.

Second, if you have a student loan, and defaulted on it, make special arrangements to get it current. The regulations regarding student loan defaults are written by the Higher Education Act, not by the Fair Credit Reporting Act, so they’re a bit opaque. It will be difficult to figure out precisely which 7 years is “considered” for defaulting on these loans. So do your best to pay them up, and contact your lender to straighten the issue. This will minimize the negative impact on your credit score.

Third, be responsible with your finances. You can change what you’ve done in the past, but don’t beat yourself up for the mistakes you’ve already made. Develop better money habits, be more responsible with your financial life and spending habits, and move forward. Pay your bills on time, never miss or delay a payment ever, avoid debt, and improve your credit score. You credit will be better even before you’ll realize.

Waiting for the black points to disappear from your credit report will take time and patience, but you don’t have to live with them forever, as long as you try to clean up your past mistakes.

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