You credit report is a digital file that holds complete records of any type of debt you have. It records things like missed car payments, repossessions, credit card outstanding balances, court-ordered judgments, mortgage defaults, debt collection agency accounts, and other types of debt. Anyone with a United States issued social security number has a credit report on file with the three major credit bureaus. The credit bureaus, (Experian, Trans Union, and Equifax) are the keepers of this file. Anytime you borrow money and do not pay it back on time, or not at all, the company that you borrowed it from contacts the 3 credit bureaus and files the outstanding account in your credit report.

Items can stay on your credit report for up to 10 years, and even then, some of them remain. Lenders will go out of their way to make sure the debt you incur to them is reported to the credit bureaus, and that is because they rely a great deal on the integrity of the credit report. Anytime you want to borrow money, a lender will run your name and retrieve your credit score, this credit score is a numerical interpretation of your entire credit report, it is a rating. Depending on what type of loan you need, your credit score needs to be at least 500.

The lenders do not take your word for it that you are going to pay them back and on time. They use your credit score to make that decision, and the logic is rational. If you have a low credit score, it means you have had problems paying your bills, regardless of the reason. This is all a lender needs to know in order to decline you for a loan. As you might imagine, bad credit rating can keep you from getting many things in life. Cars, houses, school loans, credit cards, and even car rentals all require a good credit rating to acquire.

Thankfully, there are ways to improve your credit, but it does not happen overnight. Anyone who tells you that it does is trying to sell you something, and it is a pack of lies. It takes years to get debts removed from your credit report, even when you pay them off! Of course, the best thing to do is pay your bills and never default on any loan, ever. Many people have bad credit, and a lot of them ruined it when they were young. Credit card companies love to give young people credit cards, because they have a tendency to run the balance up all the way to the max. Then when they run the card up to the limit, they have no choice but to make payments on the balance since they do not have the principal. Most of these payments cover interest and barely any of the principal. The credit card companies do this on purpose, and ruin young people’s financial security before they even get out of college.

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You have seen it on television oh so many times. A company promises to completely wipe things off your credit report and have your credit score fully restored virtually overnight. Well, unfortunately, real life is nothing of the sort. Companies, like this one, have the same powers over your credit report as you do. The simple fact is that you cannot remove an accurate , legitimate debt from your credit report without paying it or settling it with the debtor, period. There are ways, however, to remove ones that are not legitimate. You do not need anyone to assist you to accomplish these tasks.

There are companies, however, that can perform all of the legal measures available for you. This can be anything from submitting credit disputes, to requesting debt validations, to setting up a debt repayment plan for you. Many different law firms specialize in this area. If you are too busy, or just would rather have someone else do it, then I would highly recommend one of these programs. They are usually very affordable, and there is almost always some level of benefit to the consumer. Just watch out for the incredulous promises like, “all negative items removed from your credit report” and other similar claims.

If you do have the time and energy, and you know for a fact that some of the items on your credit report are erroneous, then I also recommend taking your credit into your own hands. If there are erroneous debts on your credit report, you have to write to them with a formal letter and explain the discrepancy in detail. Tell them why you believe the debt is not legitimate, and provide copies of any documents and receipts to strengthen your case. When the credit bureau receives your letter, either they will remove it immediately (unlikely), or they will start an investigation into your claim. It takes about 30 days for this process to complete, and even a lot earlier sometimes. If you have used the same name and address for years on end, then they will have no trouble locating records about you, thus it is easier for them to complete the investigation.

After they are done, they send you a letter of decision. That letter will tell you that they found the debt to be accurate (it stays on the credit report), or they cannot prove the validity of the debt and remove it from your credit report. This is just an example of one of the simpler scenarios in dealing with the credit bureaus. Sometimes, the process can get complicated; getting to know the ins and outs of the credit industry can go along way towards helping you beef up your FICO score. This letter is an example of an erroneous entry removal request that you would send to the credit bureaus, just adjust it in the appropriate areas, and send it to the credit bureau.

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