Your credit report is a representation of your credit worthiness. Credit reporting agencies will usually list information based on the lines of credit you’ve taken in the past and how you’ve repaid them. Your credit score can tell a creditor the kind of risk you pose when approved for a loan. If you have a poor credit rating, it can be hard to be approved for a loan since you present a high risk to creditors.
It’s usually recommended that you request for your credit report at least once every year. Get the report and take the time to review it for any incorrect or misinformation. If you notice any information that is not true or is incomplete, request the agency for a removal or correction to be done or better yet, contact a company that offers credit repair Toronto. Once these adjustments are made, you may be approved for the car loan or mortgage you really needed.
If you filed for bankruptcy, it should be deleted automatically from your report after the stipulated number of years. Every bankruptcy filing has a discharge date which is simply the date that the plan is completed after filing. The bankruptcy record will be deleted from your report either 7 or 10 years from the filing date. If it’s chapter 13 bankruptcy, expect it to be deleted after 7 years. This form of bankruptcy is deleted after a shorter period because you are expected to make a partial repayment of the amount you owe.
Chapter 10 bankruptcy filing, on the other hand, is deleted after 10 years. This long period is usually given because none of the debts were repaid. Reviewing your credit report once annually is important because it helps you to keep track of the delinquent accounts after declaring bankruptcy several years ago. Sometimes the bankruptcies are reported with the wrong data or compliance violations. Having a company that offers credit repair to offer their professional advice can help in filing reports for its removal.
If you have gone through a foreclosure, chances are that your mortgage lender reported it to the credit bureau so that it can depict on your credit report. However, the foreclosure will only remain in your report for 7 years under the public information section. Having a foreclosure on your report can damage your credit and you may be turned down for loans or credit cards. However, if you take steps to handle credits better in coming years, the foreclosure will have less of an impact on your score. For this reason, it is important to begin rebuilding your credit after facing a foreclosure.
Remember that as much as the Federal Law requires foreclosure to be removed from your report after 7 years, this doesn’t always occur. You have a right to request the credit bureau to remove the information from your report if it still there 7 years later. Examine your credit report regularly to stay on top of errors, misinformation or incomplete information that could make it difficult to seek new loans and credit cards.