You search for credit repair companies, but all focus on how to get inaccurate information removed from your credit report. You search on Google for suggestions of how to improve your credit when you have negative, but accurate, information on your credit report. You find a source that tells you to “cash in your savings account or 401k and pay off your credit cards.” Hello. If you had either of those things, you likely would not currently be in debt!
You feel somewhat desperate when you ask, “Can I rebuild my credit when accurate negative information cannot be removed?” The answer is yes. It may take a while, but yes. You can do this.
In the past, I’ve written about how to get false information off of your credit report. I’ve also written about how to deal in general with credit reporting errors. Now, I have some tips for you if the negative reports are accurate and you are not able to have them removed.
Tips for Improving Your Credit Score Even When Negative Information is Accurate and Cannot be Removed
Credit reporting companies are only legally required to remove inaccurate negative information from your credit report after you have provided sufficient proof that the information is inaccurate. The problem arises when the information is negative and accurate, but you want to improve your score.
You cannot expect immediate results. It takes time. But some tips for achieving this goal include:
- Making on-time payments. Having credit, whether a car loan, department store credit card, or general credit card, and making payments consistently on time will help you every month. As time passes, you build up a history of on-time payments which will gradually improve your credit score. Late and missed payments reduce your score substantially, so a history of on-time payments increases your score
- Bring accounts current. As much as possible, bring delinquent accounts current and then begin paying them according to the terms of the original contract.
- Reduce your debt utilization. This requires you to assess how much credit is available to you versus how much you are using. The more of the credit that is available to you that you use, the lower your credit score. For example, if you add all of your credit card maximums together and they give you $10,000 worth of credit and you are in debt $9,999, your score will be lower than if you are only in debt for $2,000 and still have $8,000 worth of credit available to you.
- Pay your utilities on time. In the past, utility payments were not considered by credit reporting companies. This is still true for Equifax and TransUnion, but Experian has a program that considers timely utility bills when boosting your credit score.
Negative information will automatically disappear after seven to 10 years, depending on the source of the negative reports. For example, most types of negative credit reports disappear after seven years while Chapter 7 bankruptcy and tax liens stay on your report for 10 years.
When to Call A Credit Repair Attorney for Help
For answers to your questions about repairing your credit even if the negative information is true and has not be removed, contact the Cardoza Law Corporation. I'm Mike Cardoza, I bring my experience as a former senior executive of a debt-buying company, a debt collection agency, and a major regional high-volume debt collection law firm, to help those people who are trying to get back on their feet and need some help improving their credit report even if negative information cannot be removed.