Your credit rating is very important, and just one mistake can make a huge difference when you need to obtain credit.
So how do you go about removing that negative so your credit rating can rise?
The first thing you need to do is pull a copy of your credit report from each credit reporting bureau: Experian, Equifax and TransUnion. Check out the information in each of those three reports. If you do find an error, you need to take steps to have those errors corrected and removed.
Here’s how to remove a negative entry on your credit report to raise your credit rating:
All three of the credit reporting companies have online forms that you can complete when you have a negative entry on your credit report. Don’t use these forms. It’s much easier to just gather your information proving that the negative information is incorrect and write a letter to the credit bureau.
Documentation can be a receipt showing payment was made, a bill showing a negative balance or a letter from the creditor saying that the bill has been settled.
Send your letter to the credit bureau via certified mail with return receipt requested so you know the letter was received. They will review your information and notify you of their decision. If it is in your favor, you will need to get another copy of your credit report so you can verify that the negative has been removed.
If you have a negative credit rating right now, there’s no way that you can completely erase that negative. What you can do, however, is take steps to raise it.
How do you remove a negative credit rating? Please know that it will take time and effort on your part. The first thing to do is to take steps to pay down your credit card debt and make any other payments on a timely basis.
You may want to look into a debt consolidation loan so that you pay off your old creditors. The advantage to this is that you will be making just one payment to one company instead of multiple payments to multiple companies.
Plus, it will reflect positively on your credit report and show that you are taking steps to remove your negative credit rating and trying to raise your credit score through smart financial practices.
There’s not much to know about how to remove a negative credit rating. It just takes time and common sense.
Gordon Putnam is a credit repair expert with Utah Credit Alliance, which specializes in credit repair and boosting credit scores. You can find him on the web at www.utahcreditalliance.com.