Financial Services

Filing disputes to correct mistakes on credit reports

There are many reasons a person may end up having bad credit. It could be due to forgotten unpaid collections in their file, bankruptcy or constant late payments. Sometimes it’s a combination of all these things and other times consumers just get bad credit because of a fault that is not theirs as data from the FederalTradeCommission indicates that at least 5% of people face mistakes in credit reporting and these impact their credit scores. These include stuff like balance information that is incorrect, outdated information on their report and other errors such as mistaken identities where one person’s credit file is mixed up with another person who has a similar name. Whichever the case, you will need to clear credit history.

clear credit history

Filing for disputes

The best way to clear credit history due to mistakes is by following online dispute processes as you view your report. Another option is to do it by mail. However, ensure that for every dispute you file to the credit bureaus, you retain a similar copy with you. If you think that the creditor is not in possession of accurate information such as improper information on unsecured debt collection, report this to the bureau, send them a copy of the right documentation, so they can investigate the dispute for they are obliged to by the law.

To dispute judgments on your credit report

Just as bankruptcies and loan defaults leave people with the worry of how to clear credit history as they know their effects on their credit reports, judgments are equally as bad. This is because once you get sued and are taken to court, a judge passes an order against you to pay a debt, and that decision is legally binding on your part. All this will be included in your report, which will have a negative effect on your credit score and could stay up to 10 years in your report. Even worse is the fact that judgments can be renewed, which is bad for a consumer looking forward to getting rid of the effect of a judgment on their credit. However, you can rectify this by disputing a judgment on your credit report. This can be done by filing for a motion in court dismissing the order with help from an attorney. Where the judgment is there in your file by mistake, you can challenge it with the credit bureaus. However, ensure you include all the necessary details.

You can easily clear credit history on your own without necessarily seeking help from anyone. This is because it includes simple routines such as making timely payments on bills, ensuring your balances are low as well as making sure that you dispute any errors on your credit report. However, when the whole process overwhelms you, or confuses you in any way, then still you can clear bad credit history with debt mediators helping you as they are professionals and will walk you through the entire process as well as advise you on the best ways to maintain your credit on your own. For more details, just visit

Practical Ways You Should Implement to Avoid Debts

Debt is something that really affects the quality of lifestyles of many people today. Actually, no one wishes to live in debts receiving warnings from their creditors concerning the debt they owe them. Everyone wishes to borrow money or loans and pay them in good time before the interest accumulates to certain levels. Since debt is a great hindrance to your financial stability, you should always distant yourself from it. In fact, you should look for mechanisms and lifestyles that help you free yourself from debt.

free yourself from debt

It is effective and possible to free from debt if you:

Don’t Just Pay the Minimum Amount

Of course, creditors give you the minimum rate you should meet when paying your debt. If you only stick to the minimum amount, it may take you long to clear your debt especially if you borrowed much. You should always rise above the minimum rate to shorten the period of your debt payment and also reduce interest accumulation. Always have extra money to add to your minimum amount since it is an effective way to free yourself from debt.

Reduce Your Expenses Below Their Actual Standards

This means that you should look at how you plan to spend your money and reduce it. If you have to meet certain needs at home, always look for ways of reducing them effectively and channel the money you reduce in paying your debts. If you don’t have an idea of how possible this can be, you should consult qualified debt mediators to help you make it happen. It may not be easy especially with some of the compelling needs in place, but with qualified mediators it is achievable.

Don’t Always Buy Everything New

It’s a good thing to have a new property such a car. But it is not always a good way to avoid debts if you just stick to buying new cars. New cars are more expensive that used cars. But this doesn’t mean that you can’t find quality used cars that could even supplement your transport needs better than some new cars. Buying a used car with quality performance would save you money especially if you wanted to take a loan to buy a new one. With good debt agreement help, you can have quality second-hand assets and avoid much debt.

Should First Pay the Most Expensive Debts

List all the debts you have and prioritize them in terms of urgency. Though some debts may not be high, the creditors behind them may have terms that make the whole debt expensive. This is common especially to creditors who don’t like negotiating or taking excuses from your debtors. If a certain debt is likely to expose you to regrettable problems such as jail terms or being auctioned, settle it first. Prioritizing your debts this way is an effective way to free yourself from debt.

Should Maintain One Car for Your Family

It doesn’t make sense if you will have to take big loans to buy your wife and children each a car. You may not be able to pay these loans if anything happens to your source of income. Remember the cars you buy to please your family require additional expenses in terms of fuel, mechanical checkups and other maintenance. Sell one car and invest that money better and share the remaining car.