Accurate negative information stays on your credit file and can remain for up to seven years. There is, however, one trick that "may" help to remove negatives from your credit files...this involves requesting written validation of each negative item on your credit file, which is your right under the federal Fair Credit Reporting Act. You don't have to pay anyone to do this.
Per the Fair Credit Reporting Act you have the right to request written validation of negative entries on your credit files. Per this law they must validate the item(s) within 30 days or remove them from your credit file. Mail a letter via certified mail with return receipt to all three credit bureaus (Equifax, TransUnion & Experian). Include a photocopy of your driver's license and social security card...If you don't include these, they may write back requesting them, which would slow the process down by several weeks. For each negative item, write a separate letter and simply include the phrase:
Per the Fair Credit Reporting Act, I am requesting written validation of this item.
Do this one at a time for each negative entry....DO NOT request validation for all items at one time.
There is NO guarantee that this will work....It may give some decent results. The worst that can happen is that all negative items come back verified.
Wednesday, September 17, 2008
Cleaning Up Credit
You first want to start with the newest items first, as they most heavily impact your credit rating. Anything less than two years old should get top priority.
Start with non-revolving items like defaulted cell phone or health club bills, as you can negotiate the complete removal on these non-revolving items from your credit files. You can get written Pay for Delete agreements when they agree to delete the item from your credit report upon receipt of the agreed-to amount. Get all terms in writing FIRST prior to paying them....DO NOT accept verbal promises from debt collectors regarding settlements. Once they get your money they will continue collection activity and deny that any settlement agreement was ever made. Without a written agreement you would not be able to challenge them.
Defaulted/charged-off credit cards are another matter. These can stay on your credit report for up to seven years.....paid or unpaid. Paying off charged-off debt will not magically repair your credit rating....If the debt is over two years old, there's not much point in bothering. Even if you negotiate with the debt collector for the removal from your credit report, the original credit card company will continue to report the charge-off on your credit report.
Start with non-revolving items like defaulted cell phone or health club bills, as you can negotiate the complete removal on these non-revolving items from your credit files. You can get written Pay for Delete agreements when they agree to delete the item from your credit report upon receipt of the agreed-to amount. Get all terms in writing FIRST prior to paying them....DO NOT accept verbal promises from debt collectors regarding settlements. Once they get your money they will continue collection activity and deny that any settlement agreement was ever made. Without a written agreement you would not be able to challenge them.
Defaulted/charged-off credit cards are another matter. These can stay on your credit report for up to seven years.....paid or unpaid. Paying off charged-off debt will not magically repair your credit rating....If the debt is over two years old, there's not much point in bothering. Even if you negotiate with the debt collector for the removal from your credit report, the original credit card company will continue to report the charge-off on your credit report.
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