Disputing negative marks on your credit report is the most effective method of improving a low score. A better payment history accounts for up to 35% of your score. Removal of these marks helps because it will show a better payment history.
You need to contact each bureau and send a dispute letter. They will often reply with a letter requesting more information about the item.
This is a stall tactic. Instead of actually investigating, they delay because it is more cost effective. People will most likely give up at this point and keep on paying extreme interest rates.
Continue to be determined. Sending another letter with the requested information will eventually cause them to investigate. During the investigation, they will contact the lender to verify the item.
It be removed from your report if the lender cannot verify it. Lenders frequently do not want to spend money and time verifying a noncollectable debt. Therefore, for the best results, we suggest you wait until the lender has received a payment for the outstanding account.
For example, since they have no more use for a charged off account that is sold to a collection agency, they will not take the time to confirm the account when contacted.
It is much easier to remove a charge off once it has been sold rather than outstanding. You can do it yourself by creating a dispute letter or you can hire a service to do it on your behalf.
The benefit of a service is that it provides you with more options to remove a mark if it is confirmed. Services can ask for creditor direct interventions, debt confirmation, escalate dispute information requests, and in severe cases, an attorney can go to court and fight on your behalf.
Your credit score is a very important number, as it impacts your finances, place of employment, residence, and many more. Approximately 25% of Americans have an error on their report and it is costing them money in higher interest rates.
In sum you can repair your credit yourself through dispute letters or by hiring a service to do it on your behalf. You can remove negative items and stop paying the high cost of a low score.