It takes six months for the adverse entry to be dropped from your credit record; seven years for it to be permanently expunged from your record. So it's a long time to wait before you, or a company you hire to work on your behalf, can do anything to improve your credit records. It's important to realize, then, that prevention is consequently superior to cure. Here are some steps you can take to avoid scams and problems with regard to your credit:
1. Review your credit history annually. It's very important that you know what your credit history says about you. At the very least, you need to correct inaccurate information. If you see anything that is inaccurate, you should dispute that now. If your report is correct, then you do not need to concern yourself. Taking the time to familiarize yourself with your credit record could save you from a lot of potential problems with future lenders. 2. Know the processes of "identification" and "soft vs. hard pulls". First of all, you should be aware that "identification" is not the same thing as a credit pull. A credit pull can take place any time a lender is evaluating an application for credit. In other words, you can positively or negatively affect your credit records by making a credit application. When a bank or financial institution pulls your credit report to evaluate your application, they are running a credit report on you. Only actual non-negative information in your credit report, and not a history of your credit, is on their computer screen, see here. The computer screen is only filled with personal, identifying information, such as your full name, current and past address and Social Insurance Number. 2. Obtain a copy of your credit report and clean it up. Some inaccuracies may possible to occur with your credit report from the lenders, and you need to request a copy of your credit report from the credit reporting agency. If there's a bankruptcy on your credit record, you need to contact that department and ask them to remove it. This can also benefit you. 3. Make your payments on time. When you make your monthly payments, you are paying interest and penalties not principal. Remember, over a long term, payment history is FIRST and THAT may be your low down low in your score! Avoid late payments at all costs! 4. Balance your allowable true and false on your credit report. Real and False: The act of maintaining accurate accounts and filing an accurate report every thirty days and allowing a credit bureau to merge with that record. 5. Do not go over your credit limit. Paying over your available credit limit can lower your score. Credit cards often over the limit hit vicinity premiums lowered your net present value. This can cost you or, if you paid off your balance, but kept the credit card close to under the limit, this hurts your score too! 6. Secure your credit report. This protects you and your interest. Anyone can steal your credit info from anywhere with an internet connection. Make your info hard to find. Also, if you don't already have a history with that credit applicant, tell them they requested your personal info to submit.
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