It is actually quite easy to remove negative items from a credit file. The best way is for consumers to contact all 3 of the credit bureaus to obtain a copy of their report. The reporting agencies are Experian, Equifax, and Transunion. The reports can be ordered for free – one time in each calendar period from many websites on the Internet. An alternative method is by contacting each of the bureaus separately to obtain this information. By combing through this data thoroughly, it will typically show the reason for a decreased credit score.
At that point, it is necessary to take the proper corrective steps to remove the offending items. The most effective method to accomplish this goal is to transcribe a dispute letter to the credit reporting agency. It will explain what information is deemed incorrect or invalid in the report. Following receipt of the document, there is a 30 day period for the credit bureau to verify the date with the company that posted it. Without this verification, the incorrect line will be removed, and the report amended.
Typically, deleted items result in a 2 point gain on most consumers' credit reports. This can result in a significant increase if there are a number of these errors on the report. By going through the process line by line, it can really result in some positive gains. This does take some work, but the small steps will result in the big picture clearing up rather quickly.
Consumers should be very specific regarding any line item that is being disputed, because not all of them may be deleted. This is because some of them may indeed be valid, so supporting data should be obtained. For wise consumers, the main thing is to remove the entries that are definitely incorrect. Borrowers can also contact the credit card companies to see if there is any leeway for a one time occurrence such as a later payment. Many times they can be amenable if the past record is exemplary. And this method certainly does not cost anything but a little time.
The dispute letter should be straight to the point, with only factual information. A courteous, well written document is sure to be met with the proper attention. Consumers should always keep a copy of the information for their records, including what was sent and the dates and follow ups that were received.