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Credit Repair: Date Of Last Activity

Understanding date of last activity is an important concept when trying to properly implement credit repair. This is because date of last activity applies not only to when a payment was made on a line of credit but also when a balance was paid off or a judgment was placed against the consumer. The date of last activity applies to all lines of credit and other financial aspects of the credit report and should be looked at closely and checked for accuracy.

To get started you need to obtain a free annual credit report from one of the three major credit reporting agencies. A law was passed which allows consumers to receive a copy of their annual credit report for free from Experian, Equifax and TransUnion. To view or receive a copy of your free credit report go to AnnualCreditReport.com or call (877) 322-8228 to speak with a representative. Once you have access to your credit report you can start reviewing the various lines of credit and other financial specifics to check and see if the date of last activity for each account is accurate.

The date of last activity on credit report tracks any activity that transpires with an associated account. It tracks not only the positives of the last time a payment was made on a revolving balance like a credit card or when a student loan was paid in full and the account was closed but also negative activities. The date of last activity will show when a debt was charged off or when an account was sent to collections in addition to late or missed payments. Both the positive and negative aspects are taken into account when lenders are deciding whether not to extend credit to individuals. If three large balances were all paid off in the same month even though all three accounts show missed or late payments that can cause a serious red flag. How did someone who couldn't make consistent payments all the sudden payoff three balances at once?

During the credit repair process, the date of last activity is normally focused on as it pertains to payment history. Credit repair organizations will often work with lenders to consolidate debt or adjust payment schedules so a goal of making payments on time can be achieved. If debts are consolidated to one primary lender and other accounts are closed this will also appear to perspective lenders as recently closed accounts so the date of last activity will become more important the longer those accounts are closed. Some activity will stay on credit report for years such as a foreclosure or bankruptcy. Again, the date of last activity is important because if the bankruptcy was nine years ago then that will be reflected and a lender might consider it far enough in the past to not be an issue

The date of last activity is an important aspect of the credit repair process because it shows a timeline of how accounts were managed and when payments were made. This paints a big picture, in addition to other factors which appear on a credit report, which shows where a consumer came from and where they're headed. If a date of last activity on your credit report is inaccurate be sure to fix it as soon as possible so lenders have a better understanding of how you manage your finances.