How to Remove Key Derogatory Items on a Credit Report
The Fair Credit Reporting Act, or FCRA, limits the amount of time derogatory items can appear on your report to seven years, with the exception of Chapter 7 and 11 bankruptcies that remain for up to 10 years, and unpaid tax liens that can remain for up to 10 years in California or indefinitely in other states. The FCRA also prohibits the appearance of inaccurate data on the report. If you have derogatory accounts on your report that are past the statute of limitations or erroneous, you have the right to dispute the information with the credit bureau and have it removed.
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Instructions
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Order your credit report. Under the Fair and Accurate Credit Transactions Act, or FACTA, consumers can receive one free report each year from Experian, Equifax and TransUnion. Order the report at Annual Credit Report.
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Check the "Negative" accounts, "Collections" and "Public Records" sections to see if the derogatory items are still present on the report. Bureaus update data often, so information may have changed.
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Dispute the derogatory items found on your report. You can file your dispute online at the bureau's website, by phone or mail. If you mail your dispute, you must write a letter that details the items in dispute and the reasons for the dispute. Include any supporting documentation.
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Give the bureau up to 30 days to resolve the dispute. Under the FCRA, bureaus have this long to investigate and correct errors. If you mailed your dispute or submitted it by phone, the bureau will send the results to you by mail. Results for an online dispute are sent to you via email. The bureau will include a new copy of your report that shows the corrections made.
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Contact the creditor directly if the investigation results are not to your satisfaction. Since the bureaus can only verify information, if there is an error in the creditor's records, you will have to make the correction at the source.
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Tips & Warnings
Avoid credit repair companies. According to the Federal Trade Commission, it could be a scam. The FCRA gives you the right to correct credit report errors yourself for free.
The FCRA also gives you the right to add a 100-word statement to your credit report that explains any derogatory items found on the report. You must submit the statement to the bureau in writing. Once added, the statement will remain there until you remove it. You can delete it anytime by sending your written request to the bureau.
Don't use a public computer to file a credit report dispute. You could become a victim of identity theft. Use a computer you know to be safe.
