Having negative credit ratings in your credit history is a strict no-no. It is something that will hinder your loan applications and get you a bad reputation when it comes to your credibility. Most financial companies will look upon you as a risky credit customer. You must be very cautious as it takes just one mistake to make all the difference between a good credit history and a bad one. So, when you have managed to somehow get a bad entry into your credit report, you should spend some time getting rid of it and setting the record straight once more.
In order to set the record right you need to first get a copy of your credit report from one of the credit rating bureaus. There are three bureaus and it is advisable to get a copy from all three of them and consolidate your own report. This is necessary because your creditors need to send in a report of you paying or not paying a bill and they are more than likely to send it to one bureau and not to the other two. If you have paid your mortgage bills and one of the three credit bureaus have not entered it into their records it is going to reflect badly in your rating. So, you need to inform them of any mistakes, with proof of your payments.
You can get a copy of your credit report online. All three credit rating bureaus have portals that facilitate you getting a report within minutes of logging in. When you see that there is a mistake in your credit report you should immediately gather all the evidence you can, such as bills, receipts and any other correspondence you may have with the creditors and send it to the credit rating bureaus and have them rectify their records.
Remember to send your letter and documents via certified mail because the credit rating companies have a mean streak and sit on the case while your ratings get distributed among any financial agency that you may have applied to for a loan. You should understand that the credit rating companies are permitted to make your report available to any financial company, but not to the general public. If they can do this they are obliged to keep their records up to date and reprimand the company that has not reported your correct financial report to them.
Erasing a negative credit rating is not an easy job. It cannot be erased, so to speak, however, it can be raised but this does take some time such as 6 months to a year. You should try to keep your rating at about 750, like most Americans. If your rating falls below 650 you are likely to be refused any financial aid you may require from any institution or company.