Many people think they can remove negative information from their credit reports if they want to improve their credit scores; however, this is not always the case, and you may want to consider looking into credit repair companies in Illinois to help you clear up any blemishes on your report.
What Can’t Be Disputed
No matter how hard you try, there are certain items on a credit report that cannot be disputed, including:
- Bankruptcies: Once you’ve declared bankruptcy, it cannot be removed from your credit report for seven to ten years.
- Foreclosures: If a lender files a foreclosure action against a property you own, it cannot be removed from your credit report for seven years.
- Tax liens: If you don’t pay your taxes, a tax lien can remain on your credit report for up to fifteen years and cannot be removed. Tax liens are public records and will remain there regardless even if it is removed from the credit report.
- Civil judgments: Civil judgments, such as those resulting from unpaid child support or other debts, can stay on your credit report for up to seven years. If you failed to repay a payday loan and your creditor filed a lawsuit, it will remain on your credit report until the seven-year period is up.
- Late payments: Late payments can remain on your credit report for up to seven years. If you’re wondering how installment accounts affect credit scores, late payments can have a serious impact.
- Charge-offs: A charge-off is a debt that the creditor no longer sees as collectible. They will write it off as a loss and sell the debt to a collection agency. Once an account has been charged off, it will remain on your credit report for seven years.
- Credit inquiries: Whenever you apply for credit, the request will remain on your credit report for two years and cannot be removed. Even so, hard inquiries may only be of interest to lenders if made within the twelve months prior to a report being pulled.
- Personal Identifiable Information: Any personal information used to identify you, such as your name, address, date of birth, and Social Security number, cannot be removed from your credit report. This information will remain on your credit report unless it is inaccurate or outdated.
Items That Can Be Removed
You can dispute inaccurate or outdated information on your credit report. If the item is incorrect, it can be removed from your credit report if you file a dispute. Examples of the types of items that can be removed from a credit report include:
- Late payments that have been incorrectly reported
- Accounts that have been reported twice
- Accounts that are not yours
- Incorrect account balances
- Outdated personal information
If you believe any of the above is incorrect, dispute it with the credit bureaus and provide proof of the error–the experts at The Phenix Group can help with this. If the credit bureaus cannot verify the accuracy of the information, it will be removed from your credit report.
How You Can Improve Your Credit Score
Even though some negative items cannot be removed from your credit report, there are still ways you can improve your credit score.
- Pay your bills on time: This is the most important factor in determining your credit score–you should make all payments on your loans, credit cards, and other bills on time.
- Keep your credit utilization rate low: Your credit utilization rate is the amount of credit you’re using compared to the amount of credit you have available. Generally, it is recommended to keep your utilization rate below 30%.
- Check your credit report regularly: It’s important to ensure all the information on your credit report is accurate. Errors can happen, so make sure to do regular credit report checkups.
- Avoid payday loans: You may be wondering if payday loans lower your credit score. They might not lower it because they aren’t reported to credit bureaus, but they do not necessarily improve your credit score either. Therefore, it is best to avoid payday loans as much as possible if you want to improve your credit score.
- Have a mix of different types of accounts: Having a variety of different types of accounts, such as credit cards and installment loans, can help you have a better credit score. This shows lenders that you can responsibly manage different types of debts.
In Summary
Some items, such as charge-offs and late payments, cannot be removed from your credit reports. However, there are still ways you can improve your credit score. Paying bills on time and keeping your credit utilization rate low are two of the most important factors in determining your credit score.
Ultimately, the best way to improve your credit score is to use credit responsibly and ensure all information on your report is accurate. For help with keeping your credit score in great shape, reach out to the professionals at The Phenix Group for a free consultation today!