Negative information on your credit report can make it much more difficult for you to obtain new forms of credit and good credit rates and it can impact your current credit terms. If you have any negative information on your report from your credit cards, you can sometimes have it removed.
Credit Reports
Your credit report contains information about your past activity as a user of credit instruments such as car loans, mortgages and credit cards. These reports are maintained by the three main credit reporting agencies, or CRAs: Experian, TransUnion and Equifax. Each company maintains its own reports and relies on the information provided to it from creditors for accurate and up-to-date information.
Credit Card Companies
When you use a credit card, the company that issues your card typically reports your behavior to one or more of the three CRAs. These reports include such activity as how much you owe on your card, how much you pay when you make a payment and whether you make on-time or late payments. The credit card company determines what information to report, but once the information has been reported, it is up to the CRA to add it and keep it on the report.
Reporting Errors
If the negative information about your credit card on your credit report is incorrect, you can challenge it by either contacting the credit card company or the CRA reporting it. You can contact the company in writing and provide evidence backing up your claim, though you should only send copies, not original documents. You can also file an online complaint through the CRA's website or add a statement to the credit report stating that you believe the item is in error.
Goodwill Adjustment
Some financial advisers, such as Liz Weston of MSN Money, advise that consumers who have had an otherwise positive credit history can ask the credit card company for a "goodwill" adjustment. When you ask for a goodwill adjustment, you ask the card company, usually in writing, to remove the bad item from your credit report by asking the CRA to do so. This is usually more effective than asking the CRA to do it yourself, though the credit card company is under no obligation to grant your request.
0 comments:
Post a Comment