How To Clear Bad Credit From Your Credit History

If you have some negative items on your credit report you should take every step necessary to remove them to get a clean credit report. It is a total fabrication that you have to just live with bad credit for 7 long years.

In today's lending atmosphere your credit score has never been more influential. The average credit score in America is a 620 which is a bad credit score and will not get approved for financing. We have heard from lending insiders that you are going to need a 700 or higher credit score just to get approved for financing today.

How To Clear Bad Credit Items From Your Report

The first thing you must do is get a copy of your credit report from each one of the three major bureaus (Equifax, Experian, and TransUnion). Now you need to look at these reports and identify the negative items that you want to have the credit bureau investigate and potentially remove from your credit file.

Now for each negative item you want the credit bureau to investigate you must write a credit report dispute letter and mail it to that specific bureau. For example if you have a charge off listing on your TransUnion credit report then you need to write a dispute letter and mail it to TransUnion asking them to investigate this item.

Additionally if the charge off listing is on your Experian and Equifax credit report then you need to write a letter to each of those credit bureaus and mail it to them. In other words each credit bureau needs to receive a letter from you.

When the credit bureaus get your dispute letter they are required by federal law to investigate the item. This federal law is called the Fair Credit Reporting Act and it was passed by Congress way back in 1970. It gives every consumer the right to dispute any item that the credit bureau has collected and is showing on your credit report.

It is a good thing that Congress passed this law because experts estimate that over 20% of all credit reports contain an error. Without this law you would be unable to have an error removed from your credit report. Further, collection agencies completely disregard federal regulation when dealing with old consumer debts, it is very common for them to try and report a debt on your credit history for much longer than the legally allowed 7 years.

When the credit bureau investigates they will contact the lender or the collection agency and ask for verification on the dates of your debt, the balance owed, and that it is truly your account. It is not uncommon for individuals to be contacted or even sued by collection agencies over debts that were not truly theirs. In other words they were sued over a debt that they had never created and their credit report was left in tatters.

If the credit bureau is unable to verify your account then according to the earlier mentioned law the Fair Credit Reporting Act they're required to remove the item from your credit report. By removing bad credit listings from your credit history you will be improving your overall payment history which is a very important piece of information when your credit score is calculated and you will fix your credit score.