Closed credit card account in the report
If you have a closed credit card account that has stayed in your report for some time, you need to find out why. These accounts can have a negative impact on your credit score. Accounts that have been paid should be deleted from the credit report 7 years after the original date of delinquency. If the account was closed more than 7 years ago and was paid well, it shouldn’t appear on your report. It could be a mistake that need to be corrected.
If the account is closed and had no delinquencies, this is harmless even if it still appears on your credit report. It doesn’t cause your rating to reduce at all. However, if you have an old credit account in your report that does include a delinquency, take steps to have it removed because this one can negatively affect your score.
Always check your credit report
One of the reasons why consumers are often advised to always ask for a copy of their credit report and review it from time to time is to prevent such situations from occurring. This kind of negative information can prevent you from securing a line of credit or even getting a loan at a reduced interest rate. The credit card account should be removed so that this negative information is not considered by other creditors whenever you borrow money.
Always ensure that your credit report only contains accurate information. If you have any information that is incorrect or misrepresented, make sure you contact the responsible credit bureau and file a complaint. There should be sufficient information on the credit report that outlines how to lodge complaints if you have untrue information in your report. If you had considered any form of debt consolidation services Toronto, expect this to show in your report for not less than 7 years in case you did not make timely payments.
Improving your credit score with negative information
If your credit report has negative information and the time is not yet due for these accounts to be removed from the report, you can still take steps to improve your rating. For instance, you can apply for a secured credit card which simply helps to show creditors that you are able to make timely payments on the amount of money you borrow.
Consider other forms of debt relief such as debt settlement Toronto if you want to be able to save your credit rating and also manage the debts you have. A debt settlement expert should be ready to explain your options. Should you choose any form of debt relief, make sure you understand what impacts they have on your credit score. For instance, if you opt to file for bankruptcy, understand that this will be recorded in your credit report for a number of years. It may compromise your ability to secure any form of financing from lending institutions. Get a reliable debt relief expert to explain to you the options you have based on your situation. Most importantly, ask to get a copy of your credit report and review all details to ensure they portray the correct financial picture.