If you haven’t yet taken care of all your delinquent accounts, it’s the perfect opportunity to negotiate with your creditors to re-age your accounts. Anytime an account becomes delinquent, the creditor or lender reports that status to the credit bureaus. Then it becomes a negative credit report item that lasts for seven years from the date it was incurred.
What can and DOES change is whether you have a collector pursuing you for the debt. If you are talking about a dormant account that has been in collections and has finally been left alone with no collections activity for a few years, messing with it can be problematic from the point of view that the collections people will start pestering you again to see if they can get money and if the SOL isn't up, they can start reporting on it again which can affect your score or they could even file suit if your state SOL isn't up.
Every time you pay on time it creates a positive space that stays on your credit forever and pushes you ahead. But each time you pay more than 30 days late, it sets you back 7 years from the date the payment was missed. And the longer a debt goes unpaid, the more it sets you back. If you let it go unpaid too long, the creditor writes off the account and changes the status to charge-off. Charge offs also set you back 7 years.
Use our sample letter for disputing errors with businesses (see below). Say that you’re disputing an item, and include the same information. Again, include copies (not originals) of documents that support your position. Many businesses specify an address for disputes. If the business reports the item to a credit bureau, it must include a notice of your dispute.
What to look out for: If you decide to take out this card and become a member of the SDFCU by joining the American Consumer Council, make sure you do not go to the ACC’s website and submit a $5 donation. That fee is waived by the SDFCU when you fill out your credit application. Simply select “I do not qualify to join through any of these other methods:” and select the ACC from the menu to avoid the $5 fee.
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This last step is easy too! Our strategy puts the bad credit of your past further and further behind you showing the credit bureaus that you are improving your credit. We make this easy for you by hand selecting the right credit cards for you to choose from - the ones that will get reported to the credit bureaus and are easier for individuals going through credit repair to get approved with.
Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.