Nowadays a good credit report has become a necessity for getting loans, mortgage or even a credit card. Following given are three simple steps to remove the negative impact of your credit score.
1 .The impact of different negative accounts is different on your CIBIL score:
First and foremost acquire your credit report which you are entitled to get one free copy every year. Carefully go through the listings in that report. Your CIBIL score is affected by different negative items differently. There are few negative items that subtract more points from your credit score like legal judgments or the current late payments etc than others like 2 yrs old collection amounts. After carefully checking these, rank the negative accounts in descending order of importance. But the most important thing to be kept in mind is the most current item creates a bigger impact on your final score.
2 .The period of time different negative items affect the score is also different:
Different negative items stay for different periods of time on your credit report like bankruptcy stays for 10 years, legal judgments for 7 years or until the statute of the judgment runs out whichever is longer etc. Tax liens, collections and late payments stay for 7 years hence you need to fix your report as early as possible to improve your credit score or wait for the negative items fall off on their own which is not advisable.
3. Deletable items on your credit report:
The essential aim of repairing a credit report is to remove as many negative items from the report as possible and as quickly as possible. Except for bankruptcies and foreclosures, all else can be deleted from the report using various strategies like negotiation, dispute, debt validation, etc. The key is to choose the right agency like collection agencies or credit bureaus, or original creditors with a right strategy.