It is important to build positive credit as well as removing bad credit items when you are repairing your credit report. The easiest way to create positive credit is by paying your monthly bills.
This will help you build a positive payment history. This is almost as important as removing bad credit items from your credit report.
Another tip is to remove negative marks from your credit report. This is done by disputing inaccurate or invalid marks.
There are estimates that 1 in 4 people have an inaccurate negative mark on their credit report that is costing them money on higher interest rates. It is your responsibility to know what is on your report and to remove inaccurate marks.
Often a divorce will result in inaccurate negative marks on your credit. During a divorcee the judge will divide the debts between the two parties.
It is common for one party to neglect to pay their court ordered debt. However this results in damage to both parties credit report.
This will happen even if the other party is unaware of the delinquency until it is too late. This party is not responsible for the delinquency but yet their credit is still damaged. This mark is inaccurate and should be removed when disputed.
Another source of inaccurate negative marks is due to lender mistakes. Lenders have humans working there, however their mistake will cost you real money.
It is not uncommon for monthly payment amounts to change on any credit line be it; student loans, credit cards, or whatever. However if you are not notified and continue to make your regular monthly payments your credit will be damaged.
This is because they are not paying the new amount due. They were never notified and continued to make regular on time payments, so it is not their fault but they will pay for the lender’s mistake.
This is an example of a negative mark that should be disputed and removed. There are plenty of other examples of when borrowers have negative marks reported on their credit when they are not at fault.
However the Fair Credit Reporting Act that was passed by congress is in place to protect you from these circumstances. This law forces the credit bureaus to investigate a disputed listing.
The difficult part will be to get the bureaus to investigate a dispute. Frequently bureaus will respond to a dispute letter by requesting more information about the listing.
I suggest you be patient if you dispute these marks yourself. The other option is to hire a professional credit repair company. However you decide to do this, you can have negative marks removed from your credit report.
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