All kinds of past bad credit scores are not favorable for your credit report. Because of only one unfavorable piece of information, you cannot obtain new credit even if you have many other open accounts with good reputation.
You can legally remove any kind of incorrect and unverifiable information with the help of the credit-reporting agency, who has recorded this unfavorable information in its file. To do it, you must contact that particular agency and inform them that you desire to dispute the wrong information, which can malign your credit report. Legally, they should ask for confirmation of the information from the source that is reporting it. If the agency does not receive any confirmation within 14 days, then that particular information must be deleted from your file! And they will mail you a recent and updated credit report for verification!
With the help of this method, you can erase the unfavorable information on your credit file, especially the one that is over one year old, or if the disputed price is below $500. The rest of such unfavorable information can generally be removed by subsequent efforts, maintaining one-month interval between them.
How to Correct Errors in Your Personal Report
After getting your personal reports, first of all, decide the status of your credit file. Then, you should try to get rid of ALL unfavorable information with the help of the method detailed herein.
Usually, either of the two firm's files does not include your entire credit history. You will find that while some information may be duplicated in one file, the others may not be included in the other file. They use your name and Social Security number for identification. These are complemented by present and past addresses, spouse's name and date of birth, etc. The credit information consists of the merchant's names, the subscriber number, credit account number, date opened, date closed, highest credit limit, highest amount of credit used, and repayment history. The last item is coded through numbers, with a sequence of ones referring to perfect repayment.
When you get your report, review it very closely and carefully. Ascertain that all information is current and correct. If you discover any mistake (for instance, when a paid loan is still listed as outstanding), you should take instant measures to correct the error. You must write exactly the nature of the error, and elaborate how it should be listed. For instance, write, "Loan xyz is not outstanding. It was paid in full on 10/31/9l." Then, send photocopies of all the important and relevant documents to substantiate your claim.
If you get a computer printout of your credit file, then on the right-hand side of the report, you will find space where you may dispute any item in the report that you believe is not accurate. Then, photocopy it and mail one copy back to the bureau through "certified mail." When the credit bureau receives your report, they have to investigate and apprise you of the outcome of this investigation. You don't have to pay for this investigation, as you possess credit rights on behalf of the Fair Credit Reporting Act passed in 1971!
And Finally?
If you still find any other unfavorable or incorrect information in your credit file, you should include a statement to your file, which disputes this information. Keep in mind that the credit agencies must include a statement like this, if you ask for it! You may also solve this problem with the creditor. For this purpose, make the creditor contact the agency on your behalf.
