Are you unsure how to remove negative items from your credit report yourself? Would you like to learn how to remove negative items from your credit report yourself? You don’t need to be a math genius or have a bunch of money to pay an expensive professional.
Who wants to deal with credit report disputes? Not us or you. You’re on this page because you want to know how to remove negative items from your credit report — so let’s find out. It’s true; you can remove negative items from your credit report. The challenge is knowing how to go about it.
Today we’re going to dive into how to remove negative items from your credit report (and get an increase in your score). Credit reports are used by lenders and other industry professionals to assess whether you’re a reliable person to lend to. Credit reporting agencies have the power to affect your financial opportunities by including both positive and negative information in credit reports.
If you have anything that might look bad to an outsider, they use this information to determine the risk of lending to you. The worry is that it will cost more in some way than if they don’t lend to you. This is why keeping clean credit is important. Granted, it’s not as simple as filling out a form.
If you have negative information on your credit report that is inaccurate, not timely, partial, or completely inaccurate, you have the right to have this information removed by contacting the credit bureaus by phone. This guide will show you how to remove negative items from your credit report so that you can then improve your credit score.
Types of Negative Credit Information That Can Be Removed
With so many different sources reporting and sharing your credit information, it’s important to understand what negative information can be removed from your report. In this article, you will find out about the types of negative information that can be removed and tips for removing it yourself.
There are several types of bad credit information that can be removed from your credit report.
These include:
Bankruptcies. A bankruptcy is a legal proceeding in which a person or business is placed under the protection of a court, which generally allows them to restructure their debts and repay them over time.
When you file for bankruptcy or a court judgment is entered against you, it’s reported to the three major credit bureaus — Experian, Equifax, and TransUnion. Bankruptcies remain on your credit report for 10 years. During that time, you’ll need to demonstrate that you’ve been able to handle credit responsibly and pay bills on time.
Collection accounts. When a creditor takes legal action to recover money owed to them, such as filing a lawsuit or using a collection agency, the debt is sent to collections. The law requires that creditors report negative information about delinquent accounts for seven years from the date of their last activity on the account — called the “statute of limitations.”
Late payments. Late payments are recorded on your credit report as late (or late and collections if the late payment was turned over to a collection agency). These show up as derogatory marks on your credit reports that can lower your score by as much as 100 points or more. Lates stay on your report for six years from the date they were reported by the creditor or lender.
Charged-off accounts. These are accounts that you have defaulted on and the creditor has written off as uncollectible. They can remain on your credit report for seven years from the date they first went delinquent, even if you pay them off during that time period. These accounts are not necessarily true debts, however, because they can be reported by a creditor who is simply trying to get rid of an uncollectible account.
Judgments are court decisions that can be filed against you if you fail to pay a debt. Judgments stay on your credit report for seven years from the date it was filed. They are typically civil judgments and not criminal ones. Civil judgments are filed by private parties, while criminal judgments are filed by prosecutors and district attorneys.
Foreclosures are one of the most common types of negative credit information that you may come across. Foreclosure is a legal process in which a lender takes possession of a property and sells it to recover unpaid debt. If you have had a home foreclosed on, it can be very difficult to get loans again because lenders will see this as an indication that you cannot manage your finances responsibly.
Tax liens. A tax lien is a claim against a property you own. It’s usually filed by the Internal Revenue Service when you owe more than $10,000 in unpaid taxes. If you pay off a tax lien, it may still show up on your credit report for seven years after you’ve paid it off.
You may be able to get it removed if: the debt was fully paid and there’s no outstanding balance left after two years, you were never notified about the debt, or the creditor has not acted on its right to pursue collection within 30 days after payment was received by the creditor.
How to File Disputes With the Credit Bureaus on Your Own
If you want to remove an item from your credit report, you have the right to do so as long as you have a good reason for disputing it.
The Fair Credit Reporting Act states that you have the right to dispute information on your credit report if any of the following is true: the information is incomplete or inaccurate, the information is outdated and no longer accurate, the information is unverifiable (for example, because the creditor doesn’t respond).
The law also covers some types of negative information, like late payments or judgments against you. The most effective way to remove negative items from your credit report is to dispute them with the relevant parties.
You can follow these simple steps to file a dispute with any credit bureau:
- Check your credit reports for errors: The first step in disputing an error is to check your credit reports for any errors. You can order one free copy of each of your three credit reports from each bureau every 12 months through AnnualCreditReport.com. Look for any accounts that seem unfamiliar or were opened without permission, and make sure that no information is incorrect or incomplete.
- Complete a dispute form: Each bureau has its own form for disputes. You can find the forms online at each of the three credit bureaus’ websites: Equifax, Experian, and TransUnion. You’ll need to complete it online at AnnualCreditReport.com or through the mail using the address provided on each bureau’s website. You’ll also need to include any documentation that supports your claim, for example, if you received an incorrect itemized bill from your utility company.
- File disputes with the credit bureaus: To file a dispute with one of the three major credit bureaus, simply go to its website and follow the instructions. You can submit your dispute online or by mail; if you choose the latter method, be sure to send it via certified mail with the return receipt requested so that you can prove when it arrived at its destination.
In addition, be sure to keep copies of everything you send and receive from each bureau during this process. It’s also important that you attach all the relevant documents to ensure that your dispute is duly processed.
- Wait for a response: Wait for a response from the credit bureau before doing anything else. If they send back an error message saying that they have corrected or removed the disputed information from your report — great!
You can move on with your life. If a mistake isn’t resolved after two attempts at disputing within 30 days each time, then send another dispute letter via certified mail with the return receipt requested.
Include copies of evidence supporting your claim (if available) such as payment receipts or other documentation proving what was reported is incorrect. Send this letter by certified mail with the return receipt requested so you have proof of delivery in case your claim is not resolved
Before you proceed to dispute, make sure that you’re disputing it correctly. In other words, if you want to dispute something on your credit report, make sure that it’s really an error.
Steps You Can Take To Erase Bad Credit Overnight
If you want to establish a good credit report, you must take care of your current credit accounts. It is one of the factors a credit rating agency will take into consideration in preparing your report.
How can you make sure that your outstanding payments are always on time? What should you do if you missed some payments before?
Follow these simple steps to avoid negative items on your credit report, moving forward:
- Check Your Credit Report Regularly: You can’t remove negative information from your credit report if you don’t know what your credit report looks like. Checking your credit report regularly is the best way to ensure that it’s accurate. You can get a free copy of each of your three credit reports from AnnualCreditReport.com once every 12 months, and you can also get one free report if you’ve been denied credit in the past 60 days (this report will include information on inquiries).
Each year, you are entitled to receive a free credit report. You should also check your credit report before applying for new loans or credit cards so that you know what to expect before the lender does its own investigation.
- Pay Off Loans Early If Possible: Try paying off credit cards and other loans before their due date so that there is nothing due at the end of the month. This will help reduce the amount of money you have to pay each month, which means that you will have more money available for future bills.
If you absolutely can’t pay off your loan, apply for an installment plan. By paying on an installment plan, you make installments toward your debt. You’re essentially extending the life of the loan and making payments toward it. However, you want to make sure not to keep a balance on your credit card that you can’t afford to pay off each month.
Put down all your expenses in a notebook or spreadsheet, including everything from rent and utilities to groceries and entertainment. This will help you track your spending and avoid overspending.
- Protect Yourself From Identity Theft: When someone else has legal rights to your bank account and is taking payments out of it without your permission, you might notice payments you didn’t authorize or a pattern of withdrawals that suggests identity theft.
Identity thieves may use your personal information to open fraudulent accounts in your name — so if you notice any discrepancies on your report, contact one of the major credit bureaus immediately.
Stay vigilant about protecting your personal information from hackers and scammers who may try to steal it over the phone or online. Monitor all financial accounts closely for unauthorized transactions or suspicious activity — which can include things like large withdrawals or purchases made with credit cards or debit cards that were not yours; charges on bills.
Also, never respond to email requests for sensitive data unless you’re absolutely sure that they come from legitimate sources (like financial institutions or government agencies).
- Don’t open new accounts: Don’t close accounts when they have a positive impact on your credit score. While closing accounts may seem like a good way to reduce debt and simplify things, doing so can actually hurt your credit score by lowering its average length of history, which is one of the factors considered in calculating scores.
Don’t open new accounts unless absolutely necessary (or if it’s going to help build up your score). Opening too many new accounts at once could hurt your score because it looks like you’re trying.
- Freeze your reports: If you find it difficult to remove negative items from your credit reports, one alternative you can consider is to freeze your reports instead. However, the accuracy of the reports will still be affected since creditors and lenders will not be able to check for your credit score if you do so. However, if you plan on applying for an account that does not require a check on your score, then this option will work for you perfectly.
Conclusion: How Can I Clean My Credit Report Myself?
The bad credit report can affect your ability to get approved for a loan, insurance, mortgage, or even a job. There are so many factors that influence your credit score – and for most people, their finances vary over time. What is good for one person, might not be good for another person.
But if there are items on your report that are affecting your credit score and bringing down the number in a negative way, it’s worth it to remove those items from your report yourself. You have to use this information wisely.
The last thing you want is to face serious legal difficulties because you are not fully informed about the law in this very specific area. Always get professional counsel from a law firm that specializes in credit repair before making any significant decision concerning your credit record.
So, as you can see, there are fortunately a number of steps that you can take toward improving your credit score. Some of these may be easier than others, but all will require time and effort on your part. As with any goal or dream that you have for the future, the hard work and focus now will help lead to better things down the line.
Make sure that your name is correctly spelled, use complete addresses, and speak to a live representative. You can also secure a credit freeze for your identity with the three credit reporting bureaus, or you can contact them individually. It’s also worth filing your tax returns late or requesting an extension if you run into problems and need more time to file.
