If you’ve ever paid a bill late, you already know how much negative entries can damage your credit. Coast Tradelines specializes in helping consumers with improving credit using effective strategies. Learn how removing bad credit entries boosts your score.
Negative Credit Score Entries Explained
You cannot get rid of negative entries if you aren’t sure what they are. Examples of such marks include:
- 30- and 60-day late payments
- Short sales
- Charge offs
Your report could contain both major and minor derogatory marks.
How To Dispute Inaccurate/Negative Credit Entries
While reviewing your credit report, count your negative entries. Doing so will help you notice any inaccurate details. The Fair Credit Reporting Act allows you to get false info on your credit report corrected. To do so, you must submit a direct dispute. You submit the dispute with whichever party supplies credit bureaus with false information.
To handle the dispute yourself, use the official Equifax, Experian or TransUnion websites. You may also call an agency, mail your dispute or contact the furnishing party.
You could also submit an indirect dispute with credit reporting agencies. This requires you to contact the agencies. You will need to let them know about the inaccurate information. Then, the credit reporting agencies look into the dispute.
Always double-check the accuracy of negative information when filing a direct or indirect dispute. While you may not like every entry on your credit report, if it’s accurate, you cannot remove it. Legitimate derogatory marks may appear on your credit report for seven years.
Once you submit your dispute, the data provider must review its records. Then, the data furnisher verifies the information. Last, they will decide to keep it on your credit report, correct the inaccurate detail. While waiting for the other party to review the details, you should receive status update emails. Examples of the alerts you may receive include:
- Open: When the furnishing party starts the dispute process
- Update: After completing the dispute and updating your credit report with the results
- Dispute Results Ready: When your credit report updates with the investigation’s results
You need not worry about affecting your credit score after filing a dispute. After the dispute process concludes, credit report changes could trigger credit score changes.
Legal Options To Dispute Negative Credit Entries
You may wonder whether you’re better off making a direct or indirect dispute. Legal professionals recommend going directly to credit bureaus. That way, you may have greater leverage and more legal options if bureaus do not address the matter.
Disputing the information directly with the furnishing party also offers benefits. By going to the source, the furnishing party must remedy the situation with all credit reporting agencies it reports to. Perhaps the inaccurate entry appears on many credit reports. If so, disputing directly with the furnishing party saves you time. You only need to submit a single dispute to correct all your credit reports.
Rather than make a direct or indirect dispute request, you may instead prefer to request a “pay-for-delete” with the creditor. That means you offer to clear the debt partially or in full. Once you do, the creditor or collection agency clears the account from your credit report. Even then, the account does not vanish completely from your credit report. The action clears the account in collections, but the negative item remains.
If a debt collection agency bought your debt already, you may prefer this option. There is a risk of making a pay-for-delete request. The collection agency does not have to honor the request.
A similar option is to write a “goodwill deletion” letter. In the note, take responsibility for the negative entry. Also, explain why you did not pay the account. It could be helpful to note your efforts to become more financially responsible. That way, you give the creditor a reason to agree to your goodwill deletion request.
How Credit Repair Companies Can Help Dispute Negative Credit Entries
You could prefer to seek help from a credit repair company to remove negative credit report entries. That way, the credit repair company does all the heavy lifting for you. You don’t pay in advance if you work with a credit repair company to dispute negative or inaccurate marks. If a company tries to charge you upfront for its services, it could violate the Credit Repair Organizations Act. Only when the organization corrects or removes the false entry, can it charge you.
When getting help from credit repair companies, look out for scams. For instance, reputable credit repair companies inform consumers of their legal rights. They should also tell you what steps to take on your own to improve your credit. Steer clear of companies that claim they can get rid of all negative marks on your credit file. While that sounds great, you must remember that credit bureaus do not wipe accurate negative information.
Run for the hills if a repair company recommends that you not contact the credit bureau. A disreputable company could try to convince you to create a new credit report. They may tell you to apply for an Employer Identification Number instead of using your Social Security Number. You should also receive a written contract before working with a credit repair business.
Deciding When To Argue Against Inaccurate Entries
Do you know how to get a copy of your credit report to review it for inaccurate or disparaging entries? You may request a free credit report every 12 months from each of the three major credit bureaus. Visit the federally authorized site to access your free credit report.
Credit Bureau Dispute Timeline
Once you, a furnishing party or a credit repair company submits a dispute, how long does it take to resolve the matter? Legally, credit bureaus may take 30 days to finish their investigation. With modern technology, you should expect the process to take between 10 and 14 days.
The timeline depends on the nature of the dispute. It could also depend on how fast the furnishing party responds to your request. If the negative entry involves your payment history, it will need third-party verification. The bureau has five days within receiving your dispute to notify the furnisher. The furnisher must respond fast enough to allow the bureau enough time to meet the deadline. The deadline for investigation is 30 days.
After making your dispute request, you may need to submit more documentation. If so, the FCRA stretches the investigation’s completion deadline by 15 days. That means you can expect a turnaround time of 45 days at most.
Continue To Protect Your Credit
After the dispute is filed, use the time as an opportunity to repair your credit further. We recommend creating a system that makes it easy for you to track your monthly bills. Use your phone to set due-date alerts, so you never miss a payment. If you can automate payments without incurring overdraft fees, do so.
Do you know your current credit use ratio? It’s how much of your total credit limit you use at a given time. This ratio makes up 30% of your credit score, so keep it low. To do so, pay your credit card balances in full each month. You should also keep your total credit balance below 30% of your total credit limit.
Maybe neither credit use ratio strategy works for you. If not, contact your credit card company and ask about a credit limit increase. Your credit card company may allow you to request an increase online or via telephone. They will allow this through updating your yearly household income. Boosting your credit limit reduces your creusetion ratio.
If you increase your credit limit, maximize the opportunity. Act as if you still have your old credit limit, so you don’t risk harming your score again.
How Tradeline Companies Help Boost Your Credit
Dispute negative credit report entries. After doing so, consider working with tradeline companies to boost your credit. A tradeline is a record of a borrower’s essential credit activities on a specific account. Information on tradelines includes:
- Current balance
- Payment history
- Credit type
- Your contact information
- A partial account number.
You can buy a tradeline from a tradeline company to improve your credit. You must pay a fee, and you won’t know the main account holder. Before purchasing a tradeline, do your due diligence. You should only work with companies that have a good reputation. Look up online reviews and testimonials. It is best to only work with tradeline providers who have at least five years in the business. You can also ask friends and family if they’ve used a tradeline company and which they recommend.
Once you buy a tradeline, get clear on how to use it the right way. Improper usage may cause more harm than good. Don’t focus on total price when selecting tradeline. Concentrate on the most essential factors. the most essential factors are the original user’s credit limit, age and use ratio.
You don’t have to let negative entries drag your credit score down. For more credit repair tips, contact us here at Coast Tradelines by submitting an online form.