Credit repair for your bad credit is a slow process. You must first obtain your your credit report and credit score from Experian, Transunion and Equifax. Look for a collection, a judgment, a tax lien or a bankruptcy.
When debt is overwhelming, some people turn to bankruptcy, which will give you bad credit. Once you declare bankruptcy, though, credit repair is really tough. Avoid it at all costs. A bankruptcy judgment will stay on your credit report for 10 years. Even if your credit score is decent, you won’t be able to get an unsecured credit card with a bankruptcy.
Usually with debt problems, people have some credit score dings, like a collection, a judgment or tax lien – but these can all be removed from your credit report. You can read how to do it yourself on creditinfocenter.com. Afraid of the the "Big 3" - Experian, Transunion and Equifax? Don’t be – there are federal laws which prescribe the exact credit report dispute process.
A study performed by the FTC revealed that over 33% of all people have errors on their credit report, some of them major. If you don’t dispute negative credit items, they stay on for the following periods of time:
- bankruptcy – 10 years
- judgment – 7 years
- tax lien – 7 years from the date paid (or released)
- late payment – 7 years
Are Experian, Transunion and Equifax being stubborn and refusing to take your credit report disputes seriously? Don’t take credit errors and the resultant judgment against you lying down – fight back! Make your disputes with collection agencies as well, as this helps your case, too.
Whether self-created bad credit or circumstances beyond their control, some people give up when they have bad credit and don’t even try credit repair. Treat your credit report and credit score like the precious gold it is. Look for a collection, a judgment, a tax lien or a bankruptcy on your Experian, Transunion and Equifax report and fight them, as they will tarnish that luster.
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