This article is to introduce you on how to remove negative items from the credit report for free yourself.If you are facing issues in getting a loan or credit card due to negative credit history then this post may be highly beneficial for you.
Whether due the financial inability, casual attitude or the mere ignorance or by errors, whatever reason it maybe, the non-payment of the delinquent accounts or debts, can land anyone into the trouble of getting their negative information reported to the Credit Bureaus by the Creditors.
The negative credit reporting due to late payments or non-payment is the crucial and most important factor when it comes to approval or non-approval of loans and credits for you. It is the deciding factor when it comes to getting the credit cards, rent an apartment, gets a car loan etc.
Whether you actually owe the debt or it is reported in error, the credit bureaus will show the negative reported information in your credit report until removed or fixed.
The best way is to avoid this, of course, is to pay them on time but if due to any reason you fall behind the payments, you still have many options available to you to fix them.
The Fair Credit Reporting Act (FCRA) is the law that defines and entails the type of information that can be listed on your credit account and for the duration, as for how long would that stay on your report.
You have the right to know and dispute the negative information reported to credit bureaus on your credit accounts and you can always challenge them if you find that the reporting has been made in error.
In other cases, there are a few options available to you to help you pay off your debts to remove or fix a certain negative reporting off your credit report and to get that cleared off the negative impacts.
Whatever is the cause of the reporting, make sure to take the steps and corrective action to secure your future in a better way.
Table of Contents
- How to Remove Negative Items from the Credit Report
- Credit Report Copy
- Raising a Dispute with Credit Bureaus
- Raising a Dispute with Creditors
- When the Account is Already Reported into the Collections
- Offer to Pay to Get the Negative Information from Credit Report Removed
- Request to Remove the Negative Items from Credit Report Based on Goodwill
- Wait for the Credit Reporting Time Limit Expiration
How to Remove Negative Items from the Credit Report
Here are a few steps that you can take to act on correcting or fixing your negative reporting with the credit bureaus.
Credit Report Copy
Get your credit report copy to know the exact position and check for any negative reporting on your account. This report is available online and at no charges.
You are allowed a copy of your free credit report every year from the three leading credit bureaus – the TransUnion, Equifax, and Experian.
It is important to get the report from all these credit bureaus to ensure that they show the correct and the same information on your reports.
There could be chances that two of reports might show up positive for you while one of them may have any negative information reported in error. In such case, you can not only keep a track of the credit report status for you but also enables you to take up and dispute any negative reporting that does not belong to you and has been reported in error.This way you can remove negative items from credit report yourself.
Raising a Dispute with Credit Bureaus
Raising a dispute is easier when raised online or via email. You can dispute the negative information on your credit report with credit bureaus based on the credit reports ordered through them. You can take the negative reporting, dispute them for errors or inaccurately reported.
If you wish you can raise the dispute through the mail, you can write them a letter detailing the negative reporting that you dispute and furnish the copy of the credit report and supporting documents to prove your case.
The credit bureaus will then take them up with the creditors, investigate and remove it from your report if found reported in error.
In case the debts were settled or paid off but still reflecting on your credit report, credit bureaus will remove the information to fix it, though there will be some accurately reported negative information that they may not be able to remove.
This reporting stay on the account for a specific period and with time and positive credit reporting becomes less effective with time.
Raising a Dispute with Creditors
You can also directly dispute the negative information reported on your credit report account with the Creditors.
You can send them the letter requesting information on the negative reporting and ask them to provide details on the negative information reported against you with the credit bureaus.
The creditors will investigate the dispute and if reported incorrectly, they will update all the credit bureaus and get the negative information removed from your account.
For any delinquent accounts, late payments and non-payments, the accurate negative information is reported to credit bureaus by the creditors. In such cases, it may not be possible to remove all the negative items from the credit report.
When the Account is Already Reported into the Collections
In cases, where the reported information was by error or you have successfully disputed it with creditors but they have still sent your account to the collections and when the collection agency still keeps on calling you, asking you to pay the amount that you don’t owe; you can file a suit against them with Consumer Financial Protection Bureau as well.
Offer to Pay to Get the Negative Information from Credit Report Removed
You can also choose to pay off the debt on the delinquent, past due or non-paid accounts in full in exchange to get the reported negative items removed from your credit report.
The payment offer is made to the Creditor and a letter is required to be sent to them detailing the offer and negotiating to remove the negative information in lieu of the payment.
Though not the entire reported negative information from credit report could be removed but it does help to fix the report and the credit scores.
Request to Remove the Negative Items from Credit Report Based on Goodwill
Even after paying the debt in full and if you are not able to negotiate the removal of information from the report, you can choose to send the credit the ‘good-will’ letter, requesting them to remove the reported negative information be removed from your credit account based on the association or the good will with the bank.
You would need to enlist the reasons for the late or non-payment and request them to assist in getting it removed from your report.
The creditors sometimes accept your request. It is best done by also reaching out the creditor by phone or through the meeting.
Wait for the Credit Reporting Time Limit Expiration
If all other options don’t work for you then you may like to just sit down and wait for the report to fall off your credit report with the time.
Since this reporting is for a period of seven to ten years, these automatically fade off with time and has the least effect on the report in the future.
No matter what option you choose to remove the negative information or dispute the errors or pay off your delinquent accounts, it is always advisable to keep your payment history sound and payments on a timely manner; to save yourself from the later hassles.
By adapting systematic financial habits, keeping track of your payments and planning your finances properly, there will be no need to fix the mistakes and go through the unnecessary ordeal of hardships and long term losses.
Let there be long term gains and no losses to help you live your life happily and financially free.
This article might have answered your doubts such as how to remove bad credit report? how can I get negative credit removed, remove negative credit history etc. Give your feedback in the comment section below.