How to Repair Bad Credit by Disputing Inaccurate Negative Information?

How to repair bad credit? This question is expected from someone who has just got a loan or credit card application rejected. Those who have declared bankruptcy, they also look for the answer to this question. Bad credit leads to bad financial status. These negative remarks on your credit report are because of your past financial mistakes. Sometimes, it is not your mistake. You can blame it on those who are reporting to the credit bureau or the credit bureau itself. However, it is your credit that is being affected. You are the one searching ‘how to repair bad credit’ on the web. So, you will have to take some actions to get it back on track.  

One of these actions is removing negative information from the credit report. Before that, you need to go through the copies of the credit report from all credit bureaus. Removing inaccurate negative information will definitely increase your credit score. The question is, how can you report inaccurate information in your credit report?

Submit a dispute

We’ve got some strategies for you. The Fair Credit Reporting Act has defined the information that will be included in your credit report. The same Federal law also defines for how long a particular type of information will be reflected in the report. This law gives you the right to dispute errors with credit bureaus.          

Disputing an error online is very easy. You must receive a recent copy of your credit report to submit a dispute online. You can also submit disputes via mail with copies of proof if you have any. The bureau will investigate your dispute and the error will be removed from your credit report.

Dispute with the business

You can also dispute the error with the business that has reported the incorrect information. The business might be debt collector, credit card issuer or a bank. You can simply write a letter to the business to dispute an error. Just like credit bureaus, the business will have to investigate the matter and report to credit bureaus.        

Make a Goodwill Request

If it is accurate negative information, you will have to follow a different approach. In this way of disputing incorrect information, money can be used as the bargaining chip to get the negative information removed. In case you have paid the account but you cannot negotiate, you can go for requesting a goodwill deletion.

Write a letter to the lender/creditor and describe why you have made that payment late. Tell the creditor about your good history with the business. Not all creditors will comply. However, some will. Just talk to the right person.                     

Send a pay for delete offer

Keep in mind that you cannot dispute accurate negative information with bureaus or the businesses. Credit bureaus will not remove verifiable accurate negative information from your credit report. You can use pay for delete offer technique. In this technique, you will pay the account in full and in return, you will get negative information removed from your credit report. The creditor may accept this offer.              

Wait for them to fall off

If you have tried all the above techniques and failed, you are left with only one choice. You will have to wait for the negative information to fall off. Most of the negative items are reported for seven years. Bankruptcy can be reported for 10 years. As the negative information gets older, its impact on your credit score is also reduced. Keep on adding positive information.

Things that don't work

All balances are reported as $0 after your debts are discharged in bankruptcy. However, this will not remove accounts from your credit report. The delinquency reporting will not be eliminated if you close an account. In case the closed account has a past due balance, the payment will be reported as delinquent. You will have to catch up on the payment. You will not be able to use the account that is closed. The negative entry will not be erased if you have paid a delinquent balance. The status of the account will be changed to “OK” or “current” after you have paid the balance. Even when you have paid the balance, charge-offs and collection accounts will be reported.