How to Fix a Credit Score and Eliminate Charge-Offs & Repossessions

Your FICO credit score is calculated based on several factors: payment history, age of accounts, types of accounts and number of inquiries. An adverse credit history, including charge-offs and repossessions, will lower your credit score. Conversely, removing adverse credit records will improve your FICO score.

Instructions

1

Obtain your credit report from each of the three credit reporting agencies: TransUnion, Experian and Equifax. You can obtain your credit report via their websites. Your credit report will have a section for negative credit information. Highlight each charge-off or repossession on your credit report. Each record will have contact information for the creditor or debt collector who entered the information.

2

Submit a dispute for any inaccurate information on your credit report. A valid charge-off notation or repossession will stay on your credit report for seven years. Submit a dispute for any charge-offs or repossessions that are older than seven years. Indicate on the dispute that the record has gone beyond the statute of limitations.

3

Contact each credit reporting agency and dispute the negative record. They will have 30 days to validate the information. Records that cannot be validated with the record creator during this time period will be removed from your credit report.

4

Negotiate with the creditor or debt collector who created the negative record. Offer a settlement or agree to pay the bill in full if they will remove the negative mark from your credit report. Be sure to get their agreement in writing before issuing payment. Submit payment to the creditor along with a letter requesting they remove the negative record, per your agreement.