Understanding Your Credit Report and Its Impact
Your Credit Report: If It Could Talk…
In today’s financial world, credit reports and credit scores drive consumer financing options. Consumers with the best credit scores receive the most favorable financing terms. Those enticing automobile commercials offering 0.00% financing for 60 months apply only to well-qualified buyers, meaning everyone else is at the mercy of their credit score. Accurate credit reports are essential for consumers to receive the best financing options available.
Understanding Your Credit Report:
It’s important for all consumers to understand how and what kind of debts are reported on a credit report. The information reported will determine your credit score. The three major credit reporting agencies are Experian, TransUnion, and Equifax. Each of these agencies provides helpful information on their websites to educate consumers about credit report issues.
Handling Disputes:
Each site also gives directions on how to handle disputes. If you find a debt that is not yours or a debt being reported incorrectly, you need to file a dispute with the credit reporting agencies (Experian, TransUnion, and Equifax). Ensure the problem is resolved with each agency. The credit reporting agencies are not responsible for correcting problems with other companies; it is the responsibility of the credit company to fix the problem with all the agencies.
Duration of Negative Accounts:
People often want to know how long negative accounts stay on their credit report. All delinquent accounts are deleted from your credit report 7 years from the original delinquency date (the date the account first became delinquent and was never current again). Negative accounts can include delinquent accounts, car repossessions, medical bill collection actions, foreclosures, settled accounts, charged-off accounts, and collection accounts.
Positive Accounts:
Positive accounts will stay on your credit report for 10 years, reported longer for the benefit of the consumer.
Bankruptcy and Your Credit Report:
Bankruptcy appears on a credit report under the public records section. A Chapter 7 bankruptcy will appear for 10 years, while a Chapter 13 bankruptcy will appear for 7 years. Accounts involved in the bankruptcy will be reported as “included in bankruptcy.” The bankruptcy does not affect how long the accounts will stay on your credit report; they will be removed after 7 years from their delinquency date, just like any other negative accounts.
Regular Review:
It’s crucial to review your credit report regularly. The three major credit reporting agencies typically allow consumers to view one credit report from their company once per week —highlighting its importance!
Visit www.annualcreditreport.com to review one of your free credit reports today to ensure the information creditors are reviewing is accurate.
Need to Consider Bankruptcy to Clean Up Your Report?
If you’re considering bankruptcy as a way to manage overwhelming debt and clean up your credit report, our Kansas City Bankruptcy Attorneys can help you explore your options. Contact us today for a free consultation.
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