Although the credit product of the bank is good, careless may make a mistake, if credit card is overdue, mortgage is late reimbursement waited a moment, produce bad credit record thereby, affect life after. Bad credit records are known to remain in the credit system for several years and cannot be modified once they are created.
There are three major credit reporting agencies(Credit Bureaus) in the United States: Experian, Equifax and TransUnion.
Banks, creditors and governments will take the initiative to report personal credit-related information, including credit card/credit account information, loan amount, repayment record and debt record, etc., to the three credit reporting agencies. The three agencies then put this information together into structured credit reports that Banks and lenders use to assess a borrower’s creditworthiness for approval of projects such as loans.
Different Banks have different approval scales for personal credit records. With the change of time, consumers’ economic status and repayment situation will also change. Banks will not always pay attention to consumers’ early bad credit records.
How to eliminate bad records?
1. First of all, pay off the arrears and overdue related expenses
2. Keep using the card
3. Don’t escape
Long-term overdue, not only will generate interest and high late fees, if escape, the bank will determine that you maliciously overdraw and call the police.
4. Pay in full on time and explain
If you forget to repay due to negligence, be sure to repay in full in time after overdue. After that, call your bank and say that you are not delinquent in bad faith. The bank will usually erase your delinquencies for you.
5. Inability to repay the loan requires timely explanation
If you are unable to pay on time due to unemployment or illness, take the initiative to state your financial situation to the bank before the final payment date and declare that you do not owe money in bad faith, you can apply for late repayment and interest discount.
Please review the post on my website if you want to know Build a Good Credit History .
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