Removing Negative Entries From Your Credit Report

Whenever a consumer misses required monthly payments or defaults on a loan, a negative entry detailing this information will appear on his credit report. The process of removing negative entries such as these is called “credit repair.”

There are many significant ways in which these negative entries can affect you. These negative entries will make it harder to be approved for any credit products, such as home loans and credit cards. You can be assured that the financial products for which you are approved will include a high annual percentage rate (APR) and associated monthly and annual fees and charges.

If this is the dilemma in which you find yourself, don’t despair! There are a multitude of online companies which, for a fee, will work to rebuild your credit. However, if you don’t want to pay the fee associated with these companies, you can venture into credit repair yourself.

You must first obtain a copy of your credit report, which may be done by contacting the three major credit reporting agencies – Equifax, Experian, and TransUnion – and requesting a copy of your credit report. These three credit reporting bureaus are legally bound to provide one free copy of your credit report every twelve months. You can call (877) 322-8228 to obtain your free copy of your credit report. Alternately, you can request a copy of your credit report from the many online companies which offer this service.

Sit down and review your credit report once it arrives. All information should be carefully reviewed to confirm that all portions of the credit history are accurate. Do not skip over personal and employment information. Check everything!

A dispute letter should be written to the credit reporting agency if you find any false or inaccurate information. Your dispute letter should explain the reason you are writing and you should include any supporting documentation you may have. Retain copies of all correspondence and documentation to and from the credit reporting agency.

After receiving your dispute letter, the credit reporting agency has 30 days to verify your claim. The credit reporting agency must remove the entry if it cannot verify the claim within this time period. You should receive a letter from the credit reporting agency outlining the actions taken related to your credit report. If the credit reporting agency does not revise a negative or false entry, you should write a letter to the credit reporting agency requesting an explanation of how they came to this decision. When this is done, it is referred to as requesting a “method of verification.”

It is beneficial to follow this process in order to improve your credit, even though it may be time-consuming. By doing this, you will improve your credit score and improving your credit score will, in turn, lead to better opportunities for more desirable financial products.

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