How to Remove Negative Items from Your Credit Report
(Even If They're Legit)
Clearing items from your credit report may take time, but with patience and a proactive approach, you can improve your credit score. Below are the key steps to help you remove inaccurate, outdated, or negative items from your credit report.
1. Check Your Credit Report for Errors
Before taking any action, it’s important to review your credit report for any mistakes. These errors can be anything from incorrect personal information to accounts that don’t belong to you. If you find any inaccuracies, you have the right to dispute them.
Request Your Free Credit Reports: You’re entitled to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). You can request these reports from AnnualCreditReport.com.
Look for Mistakes: Common errors include incorrect account status, misspelled names, wrong credit limits, or accounts that have been closed but are marked as open.
2. Dispute Inaccurate Information
If you find any errors, you can dispute them with the credit bureaus. This is a formal process where the credit bureau investigates the disputed information.
How to Dispute:
Online: Each credit bureau has an online portal for disputes.
By Mail: You can also dispute items in writing. Be sure to include supporting documents (e.g., account statements) to back up your claim.
By Phone: Some bureaus allow disputes over the phone, but it’s often more reliable to do it in writing.
What Happens Next: The credit bureau will investigate the dispute, typically within 30 days. If the information is found to be inaccurate, it will be removed from your credit report.
3. Negotiate Settlements for Outstanding Debts
If there are legitimate negative items on your credit report, like missed payments or defaults, you might be able to negotiate with the creditor or collection agency to have them removed.
Settling Debts: You can offer a lump-sum payment to settle the debt for less than the amount owed. In exchange, ask the creditor to remove the negative item from your credit report.
Pay for Delete: This is a tactic where you offer to pay off the debt in full in exchange for having the account removed from your credit report entirely.
Important Note: Not all creditors will agree to a “pay for delete” arrangement, but it’s worth asking. Get any agreement in writing before making the payment.
4. Ask for Goodwill Adjustments
If you have a history of making payments on time but missed one or two payments, some creditors might be willing to remove the late payment entries as a goodwill gesture.
How to Ask for Goodwill Removal: Write a polite letter to the creditor explaining your situation and asking for the removal of the late payment. If you’ve been a good customer overall, they may agree to remove the negative mark as a favor.
Key Points for Your Letter: Be respectful and explain the reason for the late payment (e.g., a temporary financial hardship) and how you’ve corrected the issue since then.
5. Wait for Items to Fall Off Naturally
Some negative items will automatically drop off your credit report after a certain period, usually 7 years for most types of negative information (e.g., missed payments, defaults, bankruptcies).
Bankruptcies: Can stay on your report for up to 10 years.
Collection Accounts: Will typically fall off after 7 years.
While you can’t speed up this process, knowing when items will drop off naturally can help you plan your next steps.
6. Request a Credit Report Reevaluation
Once you’ve successfully cleared items off your credit report, it’s a good idea to periodically check your reports to ensure the updates are reflected. If you’ve made significant improvements to your credit, you can request the credit bureau to reevaluate your credit score.