|
Steps to Remove Negative Credit:
Step 1: To dispute a negative item on
your credit file you need to first identify the negative items that you want
removed.
Once you know which items to dispute, DO NOT complete the Dispute Forms that the
Credit Bureaus included with copies of your credit file that they sent you. It's
much more effective to easily follow the outlines of these
sample letters.
Be sure to include a copy of your credit file and keep the original for your
records. Highlight or underline the items you are disputing. Mail the dispute
forms to the address listed on each credit file.
To dispute an inquiry, simply write that you never applied for credit with that
company.
Make a photocopy of your dispute letter for your records and be sure to send it
by Certified and Return Receipt Mail from your local Post Office. Mail your
dispute form to the address provided with your credit file. Repeat the above
process for each item that you want removed or changed.
Step 2: After reviewing your updated credit file and finding that most or
all the negative items have been removed, you may now focus on building a
positive credit profile. Positive information will always outweigh a few
negative items that may remain on your file.
Step 3: This technique is extremely effective in removing any negative
information that was supposedly verified as correct after your dispute.
Important: Always remember that if the dispute is sent in from anyone other than
you, the Credit Bureau will suspect that you have paid someone to repair your
credit. This raises all sorts of Red Flags. Since they make so many mistakes it
is imperative that they believe you are working alone and trying to fix a real
legitimate mistake.
If there is a negative item that you want removed from your credit, such as a
bankruptcy, charge off or collection account, you may want to write that this is
NOT your account and you want it removed immediately.
If the account is now paid off, but was seriously past due at one time, DO NOT
write that it's not your account. Instead, write that it is your account but was
NEVER past due and you need it updated to say that everything has always been
current.
An Extremely Powerful Technique...
This auditing technique is usually only practiced by attorneys. It would be very
expensive to hire attorneys to do this for you. However, by following the
instructions you'll get similar results as any attorney (you just won't have to
pay).
If the Credit Bureaus were able to verify any disputed information as correct,
it would remain on your credit file. So you'll need to contact the creditor who
is reporting the information. The creditor who reported the item is listed on
the left or bottom of your credit file. If their phone number is not provided,
call directory assistance in their city and ask for the creditor's telephone
number. Call and ask them to mail you written proof and documentation that this
is actually your account, since you do not believe the account belongs to you.
Almost all creditors and collection agencies use computers to store information
about debtors and they throw out original, signed contracts along with other
original documents. This makes it easy for creditors to store and organize
information BUT makes it impossible to actually prove the account is really
yours and not just another mistake.
Federal Law requires that upon your request, all creditors must show you written
proof that the account in question is in fact yours. Written proof is a copy of
the contract you signed with the original creditor. As we explained before, you
are stored on the creditor's computer and chances are excellent that they have
thrown out all the proof that this is your account.
The only creditors that may have proof are the courts (Recent Bankruptcies,
Unpaid Tax Liens, Unpaid Judgments & Unpaid Child Support).
Again, all Federal Laws are
in your favor. If you say an account is not yours and the creditor does not have
written proof that the account belongs to you, they must remove the account from
your credit file and cease all collection activity. If they don't have written
proof that the account is yours, there are two ways to get the item removed.
Important
Only allow a creditor 7 days to get the
proof into your mailbox (3 days to find it and 4 days for the mail). If it takes
any longer they probably do not have proof and you should start taking the
action listed below. If the creditor does supply you with all the written proof
that the account belongs to you, go to Step 4.
Get The Edge Above Your Creditors
A. Contact the Attorney Generals Office in the city of the creditor who is
damaging your credit. Get the phone number through directory assistance. Tell
them that you have a creditor who is damaging your credit by reporting an
account that is not yours. You have requested proof that the account belongs to
you and they do not have it. They will contact the creditor and have the account
removed from your credit file. This is free legal service and almost guarantees
they will get the item removed.
B. If you want to make some money off of the creditor then take them to Small
Claims Court. To do this, you will need to call your county courthouse and ask
about the proper procedure to follow to get a court date. It's very easy and you
can do it all yourself. You'll be asked to fill out one or two simple forms
stating your complaint. You may want to write that you wish to remove the item
from your credit file since it is not yours and the creditor has no proof that
it is your account. After you receive a court date, mark it in your calendar and
make sure to attend at the proper time, place and date. Bring in the receipts
from the registered mail you used for your disputes along with your phone bill
and sue the creditor for your expenses and emotional stress. Remember, if they
do not have proof that this is your account you will win and the account will be
removed from your credit file! Also, if the creditor is out of state and does
not show in court, you win by their default.
So far, we have not yet heard of any creditor showing up in court. They are
simply far too busy to waste time on one person when they have thousands of
other people to be concerned with. You may contact an attorney in your area for
a free consultation about what your rights are concerning your particular
situation.
Step 4: If the creditor is able to supply the written proof you request,
offer to settle the debt for 10 cents on the dollar provided that you have the
money. If you don't have the money go to Step 5. If you owe $1,000, offer the
creditor $100. If they refuse, tell them that you will file Bankruptcy and they
will get nothing. This will certainly open them up to negotiating with you.
Whatever you agree to pay them, it should be a lot less than you originally owed
them. Do not agree to pay interest charges or penalties on past due or
collection accounts.
Step 5: If you don't have the money to make payment arrangements, start
back at Step 1 of this section. Remember that the laws are in your favor and you
are legally allowed by Federal Law to dispute the negative items on your credit
file every 30 days. You are allowed to repeat this process as many times as you
wish until the Credit Bureaus cannot verify the item and must remove it. As you
already know, the creditors do not have the staff to handle all the disputes
they receive, so if you persist, eventually the items may be removed.
Sometimes the Credit Bureaus may sometimes reply telling you that they already
verified the information as correct. If this happens, write back telling them
that it's a Federal Law that they must verify your disputes and that you'll sue
them for $5,000 for each dispute that they do not handle properly. Once they
know that you are aware of your rights, they'll become very cooperative.
Extremely Important
If you agree to make payment arrangements with any creditor, do so only under
one condition. The condition is that before you pay any money, the creditor must
mail you a written agreement that they will report the account to the Credit
Bureaus as current, paid off and never late! Otherwise, it may still remain on
your credit file and may not be worth paying.
credit
repair sample letters
|
Equal
Housing Lender. © 2005 Shea Mortgage Inc., 155 Inverness Drive West #100
Englewood, CO 80112. Some products may not be available in all states. This is
not a commitment to lend. Restrictions apply. All rights reserved.