Your credit report is your passport to obtaining loans, renting apartments, and getting employment and promotions. Any errors in your report and you will end up paying a higher premium on your insurance or a higher interest rate for loans.
Let's say the negative errors are there and you did not even realize it. Once you wake up to the fact, it is important that you fix them. If you feel the errors are inaccurate, then immediately submit your complaint in writing to any of the three CRAs: Equifax, Experian or Trans Union. These companies will then investigate with the information provider companies, and if the information is genuinely found to be inaccurate, they will delete the same from your report and also provide you with a copy of the same. Keep in mind that the investigation usually takes up to 30 days.
It is important to submit your complaint in writing. Also, you must submit a copy of the complaint to the information provider company. Keeping a record of your communications is very important and can be a source of legal evidence.
All this must be done even if you feel that the negative report contained errors stating you were the defaulter. Otherwise, you need to be very honest with yourself. The best thing to do is to study your financial situation carefully, and come up with a plan to pay back your dues. This may involve determining ways to pay back your bills in small installments.
Other options may include taking up a second job to meet your debts. Also, you can go for credit counseling and even file for bankruptcy, if the situation so arises. One other way to improve your report is to look for omissions. This means that you may have repaid some loans or bills and that information has not been added to the credit report. All this will help to improve your credit ratings to some extent.
Whichever way you look at it, you need to fix your credit report. If the errors are inaccurate, report them to any of the consumer reporting companies. If they are genuine, work out a plan to pay your debts. If you cannot do so, consider filing for bankruptcy.