6 Common Questions About Credit Repair

How does one go about removing negative items from his or her credit report? Other debthelp.com articles explain why you should challenge negative items and how to monitor your own credit report. In this article, we will discuss incorrect negative items on your report, as people always seem to confront the same obstacles when trying to have these items removed. Many negative marks are just simple errors. It actually is estimated that 70% of all credit reports have some errors!

Luckily for you, it is up to the credit reporting agency to prove that a negative item belongs on your report, and this is – quite frankly – an enormous burden. If pressed to do so, many negative items (even accurate) must by law be removed because they cannot be proven.

Here is a list of the six most common questions about negative marks, and what you can do about them.

How helpful are all those companies on the internet that claim they can remove negatives?

Some are helpful, others are far from it. The strategies of most companies that contest negative marks are sound, but other companies will charge you a fee and then make no attempt to remove negative items. In any case, you need to ask yourself what exactly you are paying for. My best advice for you is to visit such companies’ sites, learn as much as you can… and then do it yourself. Most credit agencies actually respond much more positively to your personalized explanations and challenges than they do to some company (we have a sample credit report dispute letter you can use to begin improving your own credit).

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Those are my ex-spouse’s negatives that became listed while we were married but separated. Am I stuck?

Not necessarily. Many credit issues are matters of state law, and whether or not you can sufficiently demonstrate your claim with hard evidence. If, for example, you have a formal separation agreement that notes the date of separation, then you should use that in your argument. By challenging negatives, you have the opportunity to explain. It is your right under federal law.

I have never been late to pay, but still see negatives on my report. Why?

There are special codes used by the reporting agencies on your report, and these codes may not be explained to you. If you do not understand the specific reason for a negative mark, ask in writing. One of the most common reasons for having a lower score than expected is having too much credit available to you based on your income. Consider eliminating superfluous credit cards and avoid using all available credit.

Is there a simple way to get rid of negatives?

Well, that really just depends on what you mean by “simple”. One way not to get rid of negatives is just to send a general letter saying “there are mistakes on my report”. Credit agencies only have to respond to a written request if it has “merit”. Face your challenges one step at a time. First, fight the negatives that are older than seven years. Second, attack inaccurate items one-by-one. Third, reconcile negative items by paying off what you can, and demand verification when a debt has been settled through payment. Fourth, you may challenge even the accurate, up-to-date negatives by insisting upon evidence of the debt. You have the right to have reported negative debts verified.

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If I pay off a negative, will it be removed from my report right away?

Unfortunately, no. It will probably take at least 30 days, and sometimes as many as 90, to see a specific item disappear. Be sure that you do not win the fight but lose the battle by not confirming your victories. It has happened that a negative is removed from your report at one agency only to repost on your report in a different agency. Similarly, there are reports of negatives disappearing only to reappear sometime down the line. Keep copies of all inquiries and correspondence you have with reporting agencies. They often rely on wearing people down, but once they see you mean business, you will see results.

I never seem to get some items off, even though I feel like I have been paying forever. Why?

This feeling actually may be based in fact. Some sneaky collection agencies have a trick by which they continually update the entry of a late payment by recent activity. This is against the law. A debt can be on your credit report only from the day that it became late, and not from the date of the last payment, contact, agreement, or charge-off. If you challenge these fake dates, you eventually will win.

The moral is not to trust any collection agency to handle your debt. Do not ask a collection agent for advice, or believe what he or she tells you about the law, your rights, or what the company can do for you. Instead, talk to a lawyer or a credit counselor about your rights. Finally, go to the article from debthelp.com about how long various negatives can stay on your credit report.

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