Buying a home is one of the most, if not the most, significant purchases a person will ever make. Most people can’t afford to pay cash for real estate. Others prefer to invest that large sum of money elsewhere. So they decide to borrow the money.
To do that, they need healthy credit. That’s why Ryon R. came to us for help.
Ryon needed a credit score higher than 552 to secure a home loan. We connected him with a certified, nonprofit credit counselor, who was able to remove four collections accounts from his credit report. Only four months later, his score shot up to 661 and into his mortgage lender’s approval zone!
What can and can’t be removed from my credit report?
As we discussed in one of our Credit Education blogs, it’s important to know what you can legally remove from your credit report and what must remain. Here’s the truth: Better credit is not about erasing your financial past. It’s about correcting inaccuracies and improving your credit going forward.
Unfortunately, there’s a lot of misinformation out there. Some so-called credit repair companies claim they can remove all derogatory information from your credit report. This simply isn’t true. In fact, it’s illegal to remove accurate information, even if it’s negative.
Under the Fair Credit Reporting Act (FCRA), credit reporting agencies are required to report accurate, verifiable information. If you missed a payment or defaulted on a loan, for instance, that information can legally stay on your report for up to seven years. Other negative events like bankruptcies can remain for up to 10 years.
At CredEvolv, we want to set the record straight: no one can legally remove accurate, negative information from your credit report. What the certified, nonprofit counselors on our platform can do, however, is help you dispute any inaccuracies or outdated information that may be hurting your score unfairly. They are trained to spot errors and unfair practices on your report. This gives you the best chance of improving your credit by removing anything that doesn’t belong.
In Ryon’s case, the legitimate removal of four collections accounts from his credit report meant the difference between being approved or denied for a mortgage. That was huge for him, and it can be for you, too.
Read more credit success stories here.