Living with bad credit in America today is possible, but it’s tough. Bad credit makes many things difficult, impossible, or more expensive. However, fixing your credit will take a lot of time and dedication. But it will lead to you pursuing your financial goals. Follow the upcoming steps and you will be taking the first step in boosting your credit.
Carefully review your credit report from all three credit reporting agencies for any incorrect information. The following list details the length of time that negative credit information affects your credit score:
Late payments: Seven years
Bankruptcies: Seven years for completed Chapter 13 bankruptcies and 10 years for Chapter 7 bankruptcies
Foreclosures: Seven years
Collections: Generally, about Seven years, depending upon the age of the debt being collected
Public record: Generally, about Seven years, although unpaid tax liens can remain indefinitely (always pay the tax man first!)
Dispute inaccurate or missing information by contacting the credit reporting agency and your lender. The most common way of disputing to the credit bureaus(Experian, Equifax and TransUnion) is through a letter.