How to Deal With a Derogatory Credit Report
If you find yourself dealing with a derogatory credit report, you may wonder what you can possibly do to rectify the situation. If your credit report entries have you reeling, you do have options.
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Instructions
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Discover if the debts are yours or not. If you aren't sure, you are allowed to request a debt validation from the current creditor at any time. If the creditor cannot provide you with proof that the debt is yours, it must be removed.
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Check the statute of limitations (SOL) for debt in your state. Most state SOLs are around 3-5 years. It may ease your mind to know that you can fight the debt without fear of being sued.
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Dispute the debts with the Credit Reporting Agencies. Derogatory credit should not have to be a financial death sentence. Ask for a full investigation into the debts--especially if the creditor cannot provide you with proof that the debts are yours. If they cannot prove it to you, they probably cannot prove it to the credit bureaus either and it will have to be removed.
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Consider identity theft. If you notice a lot of recent derogatory credit that you know for a fact you did not accrue, you may be the victim of identity theft. Place a fraud alert on your credit report while you investigate the matter.
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Contact your attorney general for help. If the credit bureaus will not help you, the attorney general can file a state lawsuit against them in order to ensure their compliance in removing debts that cannot be validated.
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Check the age of the debts. Derogatory debts must be removed 7 years after the original debt first went 180 days delinquent. They won't hang around forever. If the drop-off date is close at hand, you may want to just wait out the sentence.
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