What Are Public Records?
There are certain public records which may become a part of your credit report. Basically, it refers to the information about a person or a business from any government agency that could be legally shared publicly. It includes bankruptcy, foreclosure, judgment, or a tax lien.
How Are Public Records Used?
Public records are used by creditors to show a serious misconduct on your credit report. This is the worst part of entry that could appear on your report. Public records are not used to show up all court actions on your credit report but only those evidences which are caused from a debt.
How to Improve Credit After a Public Record?
It is difficult to remove public records from your credit report yet one can do it. Removing a credit inquiry or late payment is easy but not public record. This is because courts are always involved.
Possibly what you can do to expunge the public record is to attempt for court records. In addition, you can also endeavor to delete the entry from credit reports. Remember, how much you try to remove the public record from the reports, they will remain at court. Also, you might be having a tainted credit report for almost 7-10 years.
In the event where records are accurate, make sure to pay overdue accounts. Once it is paid, contact each credit bureau to know how long this information will stay on your credit report. Even your attempts to public records removal are not succeeded, there are other measures you can do to improve your credit score. Be sure your credit card and loan payments are submitted on time. Avoid taking loans that can prove harmful to you in long-term. Try to maintain credit utilization rate less than 30% at all times.
The Importance Of Public Records
While a credit report is essential to know person’s finances efficiently, presence of public records can influence the business credit score negatively. It can harm the scores. However, it acts as an effective tool in identifying mismanaged debt by lenders. This is how it helps lenders decide whether to give you credit or not.
Types of Public Records
Due to change in policy, certain types of public records are included in credit report whereas others are not.
Can't afford to pay your debts? If so, then you must be thinking to file for bankruptcy. It can surely help you out, however it comes with its negative consequences as well. One of the fact is that bankruptcy can show up on your credit reports. It can cause problems and hurt your business credit score as well while applying for a new loan in the future.
This happens when a creditor takes legal action against you for unpaid debt and you lose. Now, court will proceed with a civil judgment against you. Since these judgments don't appear on credit reports as once they used to be, they can no longer create an impact on credit score.
Tax liens basically secure the government's legal claim to take hold of your property in case you fail to pay your taxes. They were previously mentioned on credit reports. Due to policy changes, tax liens are neither shown on credit reports nor they impact business credit scores.