5 Things To Get Rid Of On Your Annual Credit Report

To receive a better credit score this year, we suggest you see to it that your annual credit report does not contain any of the following items, things to get rid ofwhich are probably the CAUSE of your low credit score:

  • Charge-offs. What are these items? These are credit card accounts and loans, which have been written off by your creditors. They did this because they realized that the time, effort, and resources they will invest in collecting payments from you would be time wasted. They have exhausted all their collections effort.  

 

But wait, don’t celebrate because they have stopped calling.  This is a big read flag to other creditors that if they lend you money, you will not pay it back.  No matter how many times they call or send letters.   In fact, having a lot of charged off accounts will make prospective lenders decline you.  No matter what kind of story you have as to why you didn’t pay.

  • Debt collection accounts. Do you have a lot of collection accounts in your credit files? If you do then it means that your creditor has decided to sell your account to a debt collection agency. This means the creditor has tried all they can to get you to pay. So they will hire another company to try to get you to pay.  Again – another big red flag to prospective lenders to stay away!
  • Public record information, such as foreclosure, bankruptcy, tax liens and even court judgments. But what does each item mean?

Foreclosure:  foreclosure happens when a bank or a creditor seizes your home, sells it, and uses the proceeds to settle your financial obligation.

Tax liens: are actually penalties you will incur for not paying your property taxes in full. The federal government can repossess your valuable assets and sell them in public auctions to recover enough funds that it can use to settle all your unpaid taxes.

Bankruptcy, on the other hand, shows that your credit problems has gone from bad to worst – leaving you with no choice but to discharge them completely for you to attain a fresh start. This is one of the most terrible entries you could have in your credit file as it can stay in your report for as long as seven years.

Court judgments: represent the legal actions that your creditors may take against you, especially if you cannot keep up with your financial obligations.

  • Fraudulent or unauthorized charges made on your credit accounts, without your knowledge. After all, a lot of hackers and even fraudsters today are working double time to gain access to your personal and credit information. And once they succeed, they might make huge charges on your accounts and leave you with a huge financial obligation.

This is why we encourage our readers to pay close attention to their credit reports. And be sure to report cases of credit fraud and identity theft to the major credit bureaus.

  • Incorrect or outdated information in your credit and payment history. Watch out for inaccuracies in your payment and credit transactions.  Make sure all your payments are being reported correctly.  After all, these entries can also compromise your good credit standing and affect your likelihood of being granted affordable credit deals, in the coming months.

Its best to  avoid having these items in your credit reports. Practice good credit habits.   And if you run into a difficult situation, always take the initiative to talk to your creditors and negotiate for a more flexible payment plan.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

2 Comments
  1. Wgat if you have them from over 10yrs. ago and rec’d a release for them? I didn’t have to pay any money due to I owe them nothing and had cancelled business license within weeks of asking for them. I sent nortirized letter to Atty. General office and they sent me release papers. Transunion has taken them off yet I can’t get the other 2 to do it. What do you do? I keep disputing everything. I just did it again with them. How do I handle it without paying a lawyer a whole bunch of money.

  2. Thanks for posting and sharing this information! Essential to financial success in the modern world, for good or ill, is building credit. A payday loan is one of the few, and they are few, financial services that does not require a credit check. That said, most other financial services do, and the credit bureau that they go to, or combination of them, reports your credit score to them. What a credit bureau does is they compile all the information that would pertain to your credit, like what accounts you have open, what late payments you’ve made, balances – they also report your employment information, car insurance, you name it. Once the information is compiled, they run it through a mathematical algorithm that determines your score, which may mean that you do not have good credit, but they report that score to the agency that requested it.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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