Is it possible to delete bad credit? It may not be easy but it is possible to delete bad credit from your credit report. The credit bureaus and politicians may not want you to believe this. The simple fact is negative items are removed from many individuals credit reports on a daily basis. So, do not believe the hype. You can have negative items removed from your credit report. A good credit score is attainable.
The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of "completeness and accuracy." When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing.
Bad credit can be very costly
If you consider what you pay to purchase a car. With good credit your interest rate on a car loan should range between 8-10 percent. With severely damaged credit that interest rate could jump as high as 20 percent. With a $20,000 car the difference you pay in interest charges alone could be $8,500 or more if you have bad credit. If you consider a $100,000 home purchase with good credit your interest rate should be 7-8 percent. If you take out a loan for the same $100,000 with a damaged credit rating your interest rate could be as high as 15-20 percent. In this example your bad credit has cost you an additional $130,000 dollars or more.
How much can good credit save you?
In the examples above if you intended to buy a new house and a new car this year you could expect to save about $138,500 or more in interest charges alone with a good credit history. It just makes good financial sense to make sure you have good credit. Check your credit report and make sure all the information is complete and accurate. If you find errors on your credit report contact the credit bureaus to have those items corrected or removed. If this is all a little too much for you to handle on your own seek the help or advice of a respectable credit law firm. Do not let your bad credit cost you thousands of dollars in interest charges. |
