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Dealing with Negative Reports

By Ruth Racey
Published: Sunday, January 12th, 2014

Credit reports about an individual give lenders an idea regarding their financial credibility and it helps them to decide whether to sanction loans or not, how much to give, and the interest rates. In such a scenario, it is quite natural that having a negative report will bode ill for your situation and finding money when required will become quite difficult. So what determines your credit report? Your bill payment dates along with your current debt amounts are the most important factors in this regard. If you are late in paying your bills, have even missed some, or have accrued debts over the years, naturally it will reflect negatively on the report.

It gives quite detailed information regarding the individuals including your residential and work address, mode of bill payments, history of being arrested, sued, and bankruptcy filing. Credit Reporting Agency (CRA) gathers such information and then makes it available to your insurance company, employer, creditor, and others related to your financial situation. Negative information remains in place for 7 years, bankruptcy report 10 years, and tax unpaid liens remain there for up to 15 years. Anyone denying you credit, insurance, job, or housing based on the report such as your insurer, lender, or employer need to give you the complete details regarding the CRA that provided it.

If you feel that, you have been denied unjustly and feel that the credit report is misleading and full of errors you will need to complain to the right authorities in this regard. In cases of incomplete or inaccurate information, one should contact both your reporting agency as well as the company offering the report to the CRA. You also need to make a formal written complaint to CRA. While you do that, make sure that you keep copies of all the correspondence you make during this time because they may prove to be crucial when your case comes up later.

Ideally, a person should ensure the checking of their credit reports at least once every year. As such, any inaccuracies or errors may be reported well within time ensuring quick action and fast resolutions. Based on the complaint, your information provider will make a thorough investigation of your case and send the report to the related CRA upon completion. Any incorrect information is collected and then updated in all the files in the archives so that the mistake doesn’t happen again. Therefore, it is important to go for quick action when something like this catches your attention.

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