How to Remove Derogatory Items From Credit Report
Credit bureaus maintain a database of credit information on consumers. Bureaus then sell a summary of this data in the form of a credit report to lenders, employers and landlords. The Fair Credit Reporting Act gives consumers the right to view this information. It also provides consumers with the right to challenge erroneous or outdated information that appears on their credit report. Under the FCRA, most derogatory items can remain on the report for seven years. After that time, the bureaus must remove it.
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Instructions
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Obtain a free copy of your credit report. The Fair and Accurate Credit Transaction Act gives you the right to order one free copy of your credit report each year from the three major credit bureaus: Experian, Equifax and TransUnion. You can order the report by mail, phone or online at each bureau's website.
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Check the report carefully for errors. Bureaus update their databases often, so information may have changed since you last viewed it. Pay particular attention to the "negative account" section to see which derogatory items are present on the report.
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Dispute the derogatory items with the credit bureaus. You can file a dispute online at the bureau's website by filling out the online dispute form. You may also file a dispute by phone or via mail. Mailed disputes should include a dispute letter that indicates exactly which items you're disputing, the reason for the dispute and any supporting documentation, if applicable.
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Print your credit report. FACTA provides one free report each year; however, if you order your report online and don't print it out, the bureau may charge you a fee to view your report again at a later date.
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Give the bureaus time to complete the investigation. Under the FCRA, bureaus have 30 days to complete the investigation and correct any mistakes. Results for online disputes are sent to you via email. Disputes initiated by mail or phone are sent to you by regular mail. Bureaus will include a current copy of your report that shows the removal of the erroneous items.
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Contact the company or creditor that reported the derogatory item if the bureau's investigation is not to your satisfaction. Corrections made by the creditor or company will update in the bureau's database as well.
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Tips & Warnings
Send all mailed disputes by certified mail, return receipt requested, to prove that you actually filed the dispute.
Never pay a company to fix your credit report. The FCRA gives you the right to correct mistakes yourself.
References
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