How to Remove Bad Credit From Your Credit Report

by HomeLoan.com
If you are denied a loan because of derogatory or incorrect information on your credit report, you must take action to remove the bad information. Rather than getting upset and sending out a flurry of letters of complaint, to remove the bad credit from your credit report, you should follow a step-by-step approach. By using a methodical approach, you are sure to remove each and every incorrect piece of information on your credit report and nothing will fall through the cracks.

Step 1

Get a copy of your credit report. In order to remove bad credit from your credit report, you have to see what is actually on the report. Go to AnnualCreditReport.com and order a free copy of your credit report. They will send you a report from the three major credit reporting agencies, TransUnion, Equifax and Experian.

Step 2

Evaluate the report to see what needs to be removed. This step is a three-fold step. First check to see if the names, Social Security number and address is correct. Second, check to see if each item on the report is yours. Third and final step is to go over each account to ensure the information is reported correctly. Look for things like incorrect late or missed payments, erroneous liens or judgments, check for proper credit limits or any other bad credit information that may be incorrect.

Step 3

Compile supporting documentation. The next step in removing bad credit is to accumulate documentation to corroborate the need for removing the derogatory items Supporting documentation includes, but is not limited to satisfaction of lien letters, canceled checks, loan statements, bank statements, money order receipts and loan satisfaction letters. Credit reporting agencies won't repair your credit unless you have adequate supporting documentation.

Step 4

Make a formal request to have the bad credit removed. The formal request can be in the form of a letter or you can complete the online dispute form on each of the credit reporting agency websites. If you write a letter, include specific details such as the creditor name, account number, dates, amounts and a full explanation as to why your credit should be repaired. Don't forget to include copies of the supporting documentation. If you use the online dispute form, you first must scan your supporting documentation and save it in a computer readable format such as .PDF or .DOC. Then complete the online dispute forms on each and attach the backup documentation.

Step 5

Follow up with the reporting agencies until the credit is repaired. This final step is often overlooked. Although credit reporting agencies have 30 days in which to investigate your claim, you should still follow up with them after 30 days. Continue to follow up every 30 days until the bad credit is removed.

Tips and Warnings

  • Stay on top of your credit. You are entitled to receive one free copy of your credit report each year from AnnualCreditReport.com. Order your credit report annually to monitor your credit report.


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