If you have negative marks on your credit report, it can affect your ability to receive approval for loans and lines of credit. Lenders will review your credit history from one or more of the three main credit reporting agencies: Experian, TransUnion and Equifax. Under the Fair Credit Reporting Act, negative marks cannot stay on your credit report indefinitely. Negative items may include late payments, collections, unpaid loans, bankruptcy and judgments.
Step 1
Review your credit report. Receive a free copy on a yearly basis from the Annual Credit Report website. You may want to space out when you request the reports from the three agencies, so that you have year-round access to your credit information.
Step 2
Check for any negative items that should not appear on the report. The Fair Credit Reporting Act allows negative marks to display for up to seven years on credit reports. Late payments, collections, charge offs, Chapter 7 bankruptcy, lawsuits, judgments, and paid tax liens can be removed after seven years. Look for any inaccuracies that may have been reported as well.
Step 3
Send the credit reporting agency a letter that states what items should be removed. If you dispute an item, send a certified letter that includes a copy of the report and the reason that the negative mark should not be on it. The agency will launch an investigation and if your claim is founded, it will remove the item.
Step 4
Contact your creditor. If you are willing to work with the creditor to settle your debt, the company may remove negative items from your report and let the agencies know that your account is in good standing.
Step 5
Improve your credit. Making payments on time, staying within your credit limit, and not charging too high of an amount on revolving accounts can improve your credit report.
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