THE PROPER PROCESS TO DELETE BAD CREDIT FROM YOUR
CREDIT REPORT
It is true, negative credit can be erased from your credit file! However, you need to know what you are doing because you can actually cause your score to lower if you get hasty and don't read through all the facts first.
Any time a consumer disputes the validity of an entry on their credit report, it is the obligation of the credit bureau to validate the information through the creditor reporting the negative information. By law the credit bureaus have 30 days from the time of receipt of the dispute to verify the information OR IT MUST BE DELETED. For more information on specific laws on credit reporting, click here to read the Fair Credit Reporting Act.
DISPUTE YOUR BAD CREDIT
**If you have the free trial (or are past the trial period) of the credit monitoring service you may easily dispute negative items on your credit report by clicking the link on the right side of the page. This will prompt you to create a free user name and password and allow you to directly dispute bad credit entries with the credit bureaus. In a matter of minutes you can file your dispute by simply clicking the account you wish to dispute, and click the reason you are disputing the entry. The process couldn't be easier, they will then send you an e-mail when the decision has been reached!
If you do not have the credit monitoring service following on of the methods below to dispute the entries you need to dispute.
DISPUTE CREDIT ENTRIES VIA THE INTERNET
Have your credit report handy, as you will need information from it to access your file online!
If you are already taking advantage of your credit monitoring system, you can go to the right column and click on the dispute credit link, then follow the prompts through - it's all handled within a matter of minutes. When the process is complete you will receive an e-mail notification of the changes made!
Your accounts will be listed along with personal identification information, employment information and so on. Click the dispute button on any account that is not correct!
Last, there are check boxes to click on, check a reason that you are disputing the matter or click the ‘other’ box and type your explanation. That is it! Disputing your negative credit is in motion! Now all you can do is wait!
DO NOT write any extra information, don't try to offer excuses, simply state the facts. Whether the account was never paid late, or is not your account, or if the balance is incorrect. Simply state the facts, or click the proper boxes.
The clock is ticking...
You will receive the results of your dispute in your mail box just after 30 days! Or via your E-mail address, if you selected that option (usually online is a bib faster).
DISPUTE NEGATIVE ENTRIES USING SNAIL MAIL
(regular mail – envelope and stamp)
If you use regular mail sure to include your…
• full name
• address
• date of birth
• social security number
• account name & number
• your contact information
• copy of drivers license and recent utility bill
• include a written or typed reason that you are disputing the credit entry
No need to get fancy with the explanation, they have heard it all, just tell them it is incorrect, paid or whatever the case may be. KEEP IT SIMPLE!
Sending the information with a return receipt is a good idea, however requesting a signature does not work - most of the departments that handle disputes are sent to P.O. boxes.
DISPUTE NEGATIVE ENTRIES VIA THE TELEPHONE
Making your dispute by telephone you will need your....
• full name
• address
• date of birth
• social security number
• account name & number
• your contact information
• copy of drivers license and recent utility bill
NOTE: If you are planning on obtaining a loan in the near future, you will need to speak with your loan officer first to be sure the changes that you are trying to make will not injure the loan he/she is working on!
There are instances that your score will actually drop when you dispute negative credit entries and they are not deleted, but are updated instead, to show paid. This brings the date shown on your report to the current date that it was updated actually making it weigh heavier in the negative direction.
As I mentioned earlier, even if the negative credit entry is paid, it is still a negative entry, and negative entries lose weight over time.
That explains why when we dispute negative credit entries, and the file is altered,
not deleted, for a few months that entry will weigh heavier. Yes that means tipping the scales toward the negative direction, lowering your score. Note the dates on the entries before you start working on them!
If you are not planning on applying for a loan within the next six to twelve months, then go for it! If there are specific concerns you have, don't be shy to contact a professional. Many times a phone call can save you a lot of aggravation in the end.
WHAT HAPPENS NEXT?......
In approximately 30 days you will receive a letter stating the results of the investigation each credit bureau has conducted. The forms you receive will contain details on whether the entry was deleted, updated with a change, or if the entry remains the same.
Go back to your worksheets and update each entry in your notes! If the entries are not deleted, then you are not finished!......
Start over and repeat the same process you did the first time, be persistent! It is worth your effort! Credit repair takes a bit of time and effort on your part, but the rewards are incredible and last a life time! If the account is not corrected properly, do not stop until your report properly reflects your credit profile.
WHAT HAPPENS BEHIND THE SCENES WHEN YOU SUBMIT A CREDIT DISPUTE?
It is the responsibility of the credit bureau to investigate ANY information you dispute. Each credit bureau will contact the creditor of the account in question. It is then the responsibility of the creditor that has entered the information against you, to PROVIDE PROOF that their claims are accurate.
Either the creditor responds with documentation of the entry information that proves it is accurate, the creditor agrees the entry is an error, or the creditor does not respond at all.
- In the event that the creditor responds with proof that their claim is accurate, the information listed on your file will remain the same.
- In the event that the creditor does not respond to the bureau within 30 days, the item is completely deleted.
- Or the creditor agrees with your dispute and requests the credit bureau to correct the file!
There are many laws in place to protect the rights of consumers, so credit bureaus strive to keep their information correct and up to date! If there is doubt, they usually error on the side of the consumer to be sure to stay well within their legal guidelines!
Keep in mind the only person that your credit truly affects is you, so it is very important to follow through, be persistent when trying to delete negative credit entries, and keep good records! You can change your life completely, by educating yourself on the best use of your credit, and your money!
To review sample letters click here!