How to Dispute Your Equifax, Experian and Transunion Credit File
Written by Matt Douglas on October 12th, 2008Correcting credit errors such as charge offs and collections is not usually performed overnight. However, it is a quicker process if you dispute items in the proper order.
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.
Below I listed the full gamut of negative items in order of severity:
A judgment or public record (including tax liens) are the worst item. This is because they can stay on your file for ten years.
Any credit cards or other debts that were discharged in bankruptcy are listed as “included in bankruptcy. These listings 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.
Banks may not extend you credit for a new home or car if you have a repossession or foreclosure on your report. Try to remove repossessions and foreclosures as they fall into the very severe credit listing category.
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.
A 30, 60, 90, or 120 late payment is considered moderately severe. The later the payment, the tougher it is to remove from your report. However, one or two late payments can often be negotiated away with the creditor.
You should ignore old late payments if you have any items that are more severe. Leave these items alone until they are the only negatives that remain.
A wrong address or employer listing has no effect on your score. Plus, the credit bureaus will probably update this eventually.
In order to quickly clean up your credit report, you must challenge the most severe items first. It does no good to focus your time and effort on insignificant items like your employer or address.
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Tags: Credit Repair
