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Disputing negative credit information usually cannot be done all at once. It is better to challenge the most severe items immediately and then move onto less severe items.
Negative credit listings are not created equal. Some items, such as late payments from a few years ago, usually have a minimal impact on your credit score. Other items like recent judgments or collections can be cold-blooded credit killers.
Ordered below is the list of negative items as they correspond to their severity.
Public Records/Bankruptcy are the most severe. Public records include tax liens and court judgments. These items are allowed to remain on your credit report for 10 years - as opposed to the seven years limitation rule that applies to other items.
When you file bankruptcy, you will have multiple negative credit items. You will have the bankruptcy itself as well as any items that were included in the bankruptcy case. All these notations are equally severe.
Collection items are very severely damaging. Try to negotiate with the agency for a complete deletion. You do not want to have a paid collection, or settled collection on your credit file.
A foreclosure and a repossession can prevent you from getting credit for a home and/or car in the future. These are looked as very severe.
Charge Offs, especially recent charge offs are indications of a very severe credit risk. A charge off can often
lead to multiple negative credit listings. The original creditor will list the "charge off" as well as the subsequent collection agencies that purchase the debt.
A recent late payment surprisingly is equally bad as a charge off. The more recent a black mark is on your credit report, the more it lowers your credit score. Multiple late payments only make matters worse. The credit bureaus interpret multiple late payments as signs that you are having a financial meltdown.
You can sometimes convince a creditor to remove a 30, 60, 90, or 120 day late payment. However, make sure that your account is current and in good standing.
You should ignore old late payments if you have any items that are more severe. Leave these items alone until they are the only negatives that remain.
Incorrect Personal Information such as a wrong address or employer is not important. The credit scoring formula does not use this information to generate your score so it is less important compared to the items above.
In sum, dispute the most severe credit errors first. These include, among other things, bankruptcy, public records, and judgments. Then, move onto charge offs, collections, and recent late payments.
For more tips for credit repair or for a free sample dispute letter or to read a review of lexington law a professional credit repair firm visit us.
By Justin Hutto Services for Real Estate Pros with Chargeoff.net
Posted on October 19, 2008 04:35 PM