You can often clean up your credit report legally, even if it is riddled with negative items. The Fair Credit Reporting Act (FCRA) entitles you to challenge any entry as long as it has some type of inaccuracy. It will be completely pulled from your report if the creditor does not verify it within 30 days. Many creditors do not bother to even respond, so you may be able to substantially improve your report by filing as many disputes as possible.
Step 1
Order your credit report through annualcreditreport.com. This government-sponsored website provides a no-cost, no-obligation copy every year as required by the FCRA. You can choose from Equifax, Experian or TransUnion, or request all three if you want to clean all of your reports at once.
Step 2
Double check every negative item for something that can be legally disputed. You must have valid grounds because the FCRA allows credit reporting agencies to immediately reject frivolous claims. Credit Infocenter, a credit repair self-help website, suggests finding minor points like misspellings, incorrect account numbers, dates or amount errors. These are legally allowable dispute points even if the account itself is valid.
Step 3
Send a dispute letter to each of the three credit reporting agencies with a list of disputed points and an explanation for each one. The Federal Trade Commission (FTC) advises using certified mail and requesting a dated delivery receipt. Each agency has a month from the date it receives your letter to investigate your claims. They must pull any items that are not confirmed by the creditor within that time frame.
Step 4
Demand that any unvalidated items be removed from your credit report immediately once the 30-day period has passed. The credit reporting agencies usually notify you of their investigation results promptly, and they will automatically remove such items as the FCRA forces them to do so. You have the legal right to demand action if they do not inform you of the results in the allotted time. Do this with another certified letter.
Step 5
Search for new grounds to dispute any negative items that have been validated. You can legally keep disputing the same item as long as you find a new reason each time, Credit Infocenter explains. Wait a few months before sending your letter so the credit reporting agency can't claim you are bombarding it with frivolous claims.
Member Comments