Dispute Your Credit Report - Credit Repair on a Deadline
Correcting credit errors such as charge offs and collections is not usually performed overnight. However, it is a quicker process if you dispute items in the proper order.
If your credit is a mess, chances are you have a variety of bad credit listings such as charge offs and collections. Some items are more damaging than others.
Below I listed the full gamut of negative items in order of severity:
A judgment or public record (including tax liens) are the worst item. This is because they have the ability to stay on your file for ten years.
Any credit cards or other debts that were discharged in bankruptcy are listed as “included in bankruptcy. These listings are just as severe as the bankruptcy listing itself.
A single collection item can lower your score by as much as 100 points overnight. You should dispute any collection error as well as negotiate with the agency for a removal.
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.
A charge off is known also as a “profit and loss write off” and is a very severe item to have on your report.
A recent late payment is especially bad for those people with previously good credit. It can instantly lower a credit score that you have spent years to establish. The scoring formula believes that a late payment might be a sign of impending 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.
The credit scoring formula is biased more towards current late payments. Older late payments should be given a low priority in your dispute process.
Incorrect Personal Information such as a wrong address or employer isn’t 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 order to quickly clean up your credit report, you must challenge the most severe items first. It does no good to focus your time and effort on insignificant items like your employer or address.