Your credit report almost always has a huge influence on the financial aspect of your life – and if your credit report is full of negative items like closed credit accounts, overdue bills, repossessions, and foreclosures, you may have some serious issues in your financial life. If you have a bad credit score, your eligibility for car loans, apartment rentals, and even job opportunities can be seriously damaged.
But the good news is, there’s hope! Even if you have bad credit, there are some basic steps that you can take to remove negative items from your credit report, and start your journey towards better financial health.
In this article, Ride Time will take a look at the 5 most common ways that you can get negative items removed from your credit report, so that you can start rebuilding your credit today!
1. Wait It Out
Obviously, this is not the most ideal way to deal with your poor credit. But it is a legitimate method of removing negative items from your credit report – each item that is on your report will expire after a set time.
- Collections accounts may be reported on your credit score for up to 7 years, plus 180 days from the date when you first fell behind on your bills with a creditor such as a credit card company.
- Bankruptcies are treated differently, depending on which credit bureau is reporting your score. Equifax maintains bankruptcies for up to 6 years on your credit report – and if you go bankrupt again, the second bankruptcy will stay on your report for 14 years. TransUnion will keep your bankruptcy on file for up to 6-7 years from the date of discharge, or 14 years from the date of initial filing, depending on provincial law.
- Late payments will remain for 7 years beyond the initial delinquency date.
- Auto repossessions will remain on your credit report for 7 years beyond the date of repossession.
If you have had a lot of credit trouble in the past, but you have repaired your credit, it’s worth looking at your credit report to see if you have any items that should be discharged soon – this can be very helpful when repairing your credit.
2. File A Dispute With The Credit Agency
If you take the time to look at your free yearly Canadian credit report, there’s a fair chance you’ll find some reporting errors. Perhaps a past credit card is listed as delinquent – despite the fact that you paid off the entire account, and then closed it.
If you do notice inaccuracies in your credit report, you can challenge it via Transunion or Equifax – creditors will have 30 days to respond. Be prepared to furnish proof of your claims – if you’re right, the incorrect items could be removed from your report entirely.
3. Ask Creditors To Remove Negative Items
It is possible to ask creditors to remove items from your credit report in certain circumstances. For example, if you made regular payments for your auto loan on time, but then missed a single payment, you may be able to contact your creditor and get them to agree to remove the offending negative item.
You could also offer to pay the outstanding debt on a late bill – this practice is known as debt “re-aging”. But be careful when using debt re-aging. While it can help you if the creditor agrees to remove the negative item from your report, your credit may be further negatively affected if you fail to pay the agreed-upon amount.
4. File A Complaint With The Financial Consumer Agency of Canada
If you have noticed inaccuracies or outdated information on your credit report, and have been unable to get a response from the relevant creditors, you can turn to The Financial Consumer Agency of Canada.
If you have a legitimate claim to have a negative item removed from your credit report, but have been unable to resolve it in any other way, filing a complaint is sure to get the notice of your creditors.
5. Consult With A Professional
There are many independent “credit repair” agencies in Canada. These agencies use the aforementioned techniques – along with a deep knowledge of the Canadian credit system – to help you remove negative items from your credit score.
However, the buyer should beware – there is no guarantee that your credit repair agency will succeed in removing negative items.
If you don’t know where to start when rebuilding your credit, it can be a good idea to partner with a credit agency, but make sure you do your research, and pick a Canadian credit repair agency with a history of good outcomes and great customer feedback.
Follow These Tips To Repair Your Credit, And Remove Negative Credit Items!
While bad credit can be very difficult to deal with, it’s not the end of the world. With this handy guide, you’ll have all the knowledge you need to deal with negative credit items, and improve your credit score!
Got bad credit? Need transportation in Winnipeg – or anywhere else in Canada? Come to Ride Time now! If you can give us proof of employment for 3 months, show us a pay stub proving an income of $1,500/month before deductions, and have a valid Canadian licence, we can help you find a fantastic used car for a reasonable rate!
Our network of 15+ lenders specializes in lending to Canadians with sub-par credit. So don’t trust anyone else – come to Ride Time today, and browse our selection of reasonably-priced, reliable used vehicles now!