How to Clean Up Credit Problems

Making any large purchase can be stressful, but it’s even worse when you have credit issues. With credit problems, you may get very unfavorable interest rates on credit, or you may be refused credit altogether. When you’re suffering with credit issues, it can seem like a hole from which you’ll never crawl.


The truth is, credit issues don’t last forever if you take the right steps to fix the problem. Here are some tips to clean up credit problems so that when you make the move on a big purchase, you get the best results and rates possible.


Dealing with Bad Credit

Bad credit can create all manners of problems. When you try to buy a home or car, or get a loan or credit card, you may find that your interest rates are sky high. You may even be denied credit whatsoever. It can create a nightmare for your purchasing power, and can even interfere with your ability to get a job. Our current modern society revolves around credit rating.


Clean up Credit Problems

In general, working to clean up credit problems doesn’t mean covering up mistakes you’ve made. Rather, it means removing outdated or inaccurate information on the report, fixing things that aren’t correct, and taking care of delinquent accounts. Any company that claims it can clean up your credit report by removing delinquencies is a scam at best.


Finding Errors

Most credit reports have some sort of error. It could be inaccurate notes on how an account was closed. It could be that outdated information which should no longer show, is still present. It could even be accounts that aren’t yours at all. The first step is to get a copy of your credit report, which you can do for free every year, and look for errors that need to be fixed.


Any errors that you discover, you should mark and list. Make notes about each, about what exactly is inaccurate or why the black mark should not be there. Be as detailed as possible in each case. The more information you have, the better off you’ll be. Gather all supporting documents you have to back up your claim.


Send Dispute Letters

The next step is to send dispute letters to each agency which includes an inaccurate mark. These letters should detail exactly what is wrong on each report, and a full list of reasons why the errors are wrong. You should also include any and all supporting documents with these letters. If necessary, you may want to work with an attorney to help guide you through the process.


Bad Credit Auto Loans

One way that you can help to clean up credit problems is to accept loans and credit designed for people with credit problems. While these will have strict terms and higher interest rates, they can if paid on time help you build new credit and still get into large purchases. If you’re in need of a car and you have credit issues, check out Blue Sky Auto Finance’s bad credit auto loan tool, and see how we can help you today.

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