How to Remove a Derogatory Item from Your Credit Report
If you have a derogatory item on your credit report, there are steps you can take to remove it. Learn how to remove a derogatory item from your credit report.
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Obtain a copy of your credit report
The first thing you need to do is get a copy of your credit report from all three credit reporting agencies: Equifax, Experian and TransUnion. You are entitled to one free report from each agency every 12 months. You can either order them online at www.annualcreditreport.com or call 877-322-8228.
Once you have your reports, go through each one carefully and look for any negative items that you want to dispute. These can include late payments, collections, charge-offs, etc. Make a list of these items along with the date they were reported and the name of the creditor.
Identify the derogatory item
The first step is to identify the derogatory item on your credit report. This can be anything from a late payment to a charge-off or bankruptcy. Once you know what the item is, you can begin working on removing it.
There are a few different ways to remove a derogatory item from your credit report, but the most effective method is to dispute the item with the credit bureau. This process involves sending a letter to the credit bureau ( either by certified mail or through an online dispute form) detailing why you believe the item is inaccurate. The credit bureau will then investigate the claim and, if they find that the information is indeed inaccurate, they will remove it from your report.
If you are unable to remove the derogatory item through a dispute, there are other options available. You can try negotiating with the lender to have the item removed in exchange for paying off the debt in full, or you can wait seven years for the item to fall off your report naturally. However, neither of these options is guaranteed to work, so it’s always best to try disputing the item first.
Gather documentation to support your dispute
In order to have a derogatory item removed from your credit report, you’ll need to gather documentation to support your dispute. This might include a copy of the original bill from the creditor, copies of any payment history you have, and any correspondence you’ve had with the creditor about the debt. Once you have all of this information, you’ll be able to start the dispute process.
File a dispute with the credit bureau
If you find a derogatory item on your credit report, you can file a dispute with the credit bureau. This will start an investigation into the item, and if the bureau finds that the item is inaccurate, it will be removed from your report.
You can file a dispute by contacting the credit bureau directly. You will need to provide them with some information about yourself and the item in question, and they will open an investigation. Be sure to include any evidence you have that the item is incorrect.
If you are not satisfied with the outcome of the dispute, you can also file a complaint with the Consumer Financial Protection Bureau (CFPB).
Wait for the credit bureau to investigate
The credit bureau has 30 days to investigate and respond to your dispute. If the creditor agrees that the information on your credit report is inaccurate, they will notify the credit bureau, who will then remove the derogatory item from your report.
If the creditor does not agree that the information on your credit report is inaccurate, they will notify the credit bureau, who will then send you a notice of the results of their investigation. At this point, you can either accept the creditor’s version of events or you can file a statement with the credit bureau explaining why you believe the negative item is inaccurate.
If you have any documentation to support your case (e.g. canceled checks or letters from the creditor), be sure to include it with your statement. The credit bureau will then re-investigate and may remove the derogatory item from your credit report if they agree with you.
Review the results of the investigation
If you find an error on your credit report, you have the right to have the item corrected or removed. You can file a dispute with the credit bureau, and if the bureau finds that the information is inaccurate, it will remove the item from your report or make a correction.
You also have the right to file a dispute with the company that supplied the information to the credit bureau. If that company finds that the information is inaccurate, it must notify all three credit bureaus so that they can correct or remove the item from your report.
If you don’t agree with the results of an investigation, you can ask for a statement of your disagreement to be included in your file and in future reports. You can also ask that your side of the story be sent to anyone who received your report in the recent past.