Updated: Feb 7, 2020
You pulled your credit report because you are curious to see how the score you are currently at came about. There are many things that can cause you to have a low score. The most common term used to describe your negative items is derogatory remarks and they typically affect your score heavily.
Creditors usually first take a look at your payment history. When you have a lot of late payments they reflect poorly on your report. If you have a few late payments you can negotiate to have them removed. Additionally, making no payments for 30 + days can affect your score even more than a late payment can. Keep in mind you can quickly turn a positive account into a negative account by simply not making payments on time.
Collections and Charge-off accounts
Collections and charge-off accounts will affect your credit score even more than a late payment. By having these on your report, you are telling potential lenders that you are not currently reliable to pay your debts and are in a financial hardship. However, not all collections and charge accounts are accurate, and thus you may be able to make a case for removal if the information on your report is inaccurate and unverifiable.
Another scenario that can affect your score is identity theft. If you are a victim, you can file a police report and send documentation to your creditors and the 3 major credit bureaus as well. There are some other measures you can take if the situation is a serious one, such as locking your credit report through just one credit bureau.
Having negative items on your credit report is not the end of the world as one may think. By law, you can dispute inaccuracies or identity theft, you may also negotiate with creditors. As time passes and you maintain your report in positive standing, your credit score will rise slowly and old items on your report will not affect your credit score as much. Most negative items will be removed from your credit score after a 7 year period - unless it's a bankruptcy.
A negative remark on your credit report can potentially lower your credit score up to 110 points. If you are having issues with your credit report and need help fixing it, please contact us today. Our experts can help you resolve many issues and answer questions on how to rebuild your credit and be on your way to a higher credit score.
Call us today at 321-400-5260 or sign up online for a Free Consultation.