What Can I Do About an Adverse Remark in My Credit Report?

A single negative item can wreck a pristine credit score for years -- bankruptcies can bump down a score by up to 240 points, according to CNN. The course of action you should take on an adverse item depends on the circumstances surrounding it. You can remove an erroneous piece of data, but only mitigate the effects of a legitimate one.

Dispute It

Consumers have the legal right to dispute any item they feel the agencies list in error. All the bureaus have online forms for such needs or you can send a personal letter to each bureau that reports the item. The bureaus have 30 days to investigate your claim otherwise you can request they remove it immediately. Unless you provide ample evidence to back up your dispute, the agencies may require extra time to investigate your case.

Personal Statement

You cannot dispute legitimate adverse marks on your credit report, though, some credit repair companies tell consumers to dispute legitimate items en masse in an attempt to overwhelm the agency. If you do dispute legitimate adverse marks, the agency will, most likely, ignore your request as "frivolous," according to the Federal Trade Commission. Instead, you may add a 100-word personal statement about the debt. For example, you could claim that you moved and the creditor sent your bill to the wrong address, which resulted in your late or missed payment. This does not guarantee that creditors will ignore the item, but they usually consider your argument.

Waiting

At the very least, you can wait out any negative information on your credit report. Most adverse items follow the "seven-year rule." Except for certain items, such as bankruptcy and judgments, all negative marks fall off a report after seven years. Inquiries fall off your report after two years and only affect your credit score for one year, although they have little impact on your credit unless you have more than six.

Tip

Every now and then the credit agencies keep reporting a false negative item. The agencies, for instance, use third-parties to report court judgments and the people transcribing information can accidentally leave off a digit or two from a court statement. In these situations you may have to take legal action because the bureaus resolve most disputes through an automated system. A lawsuit should be a last resort because it requires legal fees, but always in the back of your mind. Thus, you need to document any interaction with the credit bureaus and employee you talk to, suggests Smart Money.