How to Remove Negative Credit Report Items From Debt Collectors

Your credit report is a very important part of your financial life. Any debts you have are reported to credit bureaus, along with information as to how timely you are paying your bills. Any late payments, defaults, arrangements to pay or court orders are recorded, and accessed by future companies who want to assess your level of risk. Typically, this is other providers of credit, from credit cards to auto loans and mortgages. Your report can also be accessed during an employment check, or by potential landlords. For this reason, it is important to check your credit report regularly and keep it looking as good as possible.

Instructions

1

Order a new copy of your credit report. There are three main credit bureaus, all who produce different reports. These are Equifax, Experian and Transunion. You are entitled to one free credit report from each per year, but can purchase more whenever necessary.

2

Collect all of your documents regarding your debt. This could be your mortgage statement, bank statements, credit card statements, car finance statements and anything else that shows how much has been paid and when.

3

Analyze the credit reports carefully. Match up each entry with your own records, and mark anything that does not match. Different companies report different information, although most will record the payment received that month, whether it was on time, and what the remaining balance is.

4

Highlight any entries you wish to dispute and. If the data contained in these entries is accurate, you may not be successful in removing them. However, there is no harm in trying, and lenders are often willing to negotiate in return for debt settlement.

5

Write to the company concerned, asking for details of the debt. Ask for a copy of your signed credit agreement, and to detail how they have calculated the amount owed. Inform them that if they cannot prove the debt is yours, you want the incorrect data removed from your credit report. The company has thirty days to respond.

6

Examine the information you are sent carefully. Check that the signature is your own, and that the interest rate being charged is the correct one you agreed too. Read the section on the contract about missing or late payments, and check that this protocol was followed. If charges have been added for other purposes, such as sending you a reminder letter, ask for proof that you received this.

7

Negotiate with the creditor. You may do this by letter or by phone, but if you reach an agreement on the phone, always ask for a copy of it in writing before acting on it. If you can afford to, offer to settle a large percentage of the debt as a full and final settlement, and ask for your credit report to be updated. If you cannot afford this, try offering higher monthly payments.

8

Act on your agreement, and check your credit reports again after one month. This should display the updated information.