How to Successfully Dispute Your Credit Report
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Disputing negative credit information usually cannot be done all at once. It is better to challenge the most severe items immediately and then move onto less severe items.
Negative credit listings are not created equal. Some items, such as late payments from a few years ago, usually have a minimal impact on your credit score. Other items like recent judgments or collections can be cold-blooded credit killers.
Here is a complete list of the negative credit items along with how much impact they have on your score.
Public Records/Bankruptcy are the most severe. Public records include tax liens and court judgments. These items are allowed to remain on your credit report for 10 years - as opposed to the seven years limitation rule that applies to other items.
Included in Bankruptcy also falls into the most severe category. If you filed bankruptcy these items are referred to as those discharged in the case. They are just as severe as the bankruptcy listing itself.
Collection Accounts are considered very severe. Collection agencies often place negative marks on your credit as motivation to get you to pay. Sometimes you can negotiate a payment in exchange for removal of the listing. Never negotiate for a “paid” or “paid for less” listing. A paid collection is almost as bad as an unpaid collection listing.
A foreclosure and a repossession can prevent you from getting credit for a home and/or car in the future. These are looked as very severe.
A charge off is very severe. You may even have multiple listings on your report for a single charge off since it is bought and reported by third-party collection agencies.
It is shocking how much a single recent late payment can reduce a good credit score. Your best move is to negotiate with your creditor to have this deleted from your report. A recent late payment is very severe.
Moderately severe items include a 30,60,90, or 120 day late payment. These items can either be disputed with the credit bureaus or negotiated with the creditor.
Old late payments are less severe. As late payments “age” the credit bureaus consider them less and less. Late payments that are six or seven years old have almost no impact on your credit score.
Incorrect Personal Information such as a wrong address or employer is not important. The credit scoring formula does not use this information to generate your score so it is less important compared to the items above.
With all that being said, I suggest that you review your credit reports and begin dispute the inaccuracies that are considered very severe. As you receive your results, focus on the less damaging items such as old late payments. This method will assist in quickly improving your credit score.
