![]() If you do have adequate documentation, the credit bureau must contact the company that reported the item and request validation – or proof that the item was not an error. Warning – you can’t just say, “Hey, that debt wasn’t mine.” You need to have documentation supporting your claim. ![]() All three credit bureaus have forms online where you can file a dispute. Maybe it was someone else’s that got in your credit file by mistake. Let’s say you review your report and find a debt charged off that wasn’t yours. The credit bureaus process thousands of items a week and they can make errors. If you find some, make sure they’re really yours. When you review your reports look for charge offs, judgments, liens, accounts that have gone to collection, etc. Get a letter or email detailing how much you have agreed to pay and the item will be deleted from your credit file.Īnother important reason to get your credit report is that it could contain mistakes that are dragging down your credit score. If you are able to settle your debt, make sure you get in writing the lender’s promise to have the item removed from your credit reports. You do have to make it clear that you’re willing to pay part of your debt but that in return, you expect the lender to remove the item from your credit report(s). Most lenders will negotiate because they’d rather get “half a loaf” then sell your debt to a collection agency where it would get just pennies on the dollar. You might start at, say, 30% and see what kind of response you get. You will need to offer to pay some percentage of your debt. Once you do, you can begin negotiating with the company to settle the debt and have it removed from your credit report. ![]() Your credit report will include the name of the lender but you may have to do some digging to get a phone number. You need to first determine which lender reported your debt as a charge off and contact it by phone. As a general rule lenders do not write off debts until they are six months past due after which time they may sell your debt to a collection agency. If you find that your credit report does show a charge off, you may be able to get it removed. These are just part of your credit history and there’s nothing you can do about them short term. A bankruptcy will stay in your credit report for either seven or 10 years (depending on the credit reporting bureau) and a judgment or lien will remain there for seven years. Unfortunately, there is nothing you can do about a bankruptcy, a lien or a judgment. The six negative or bad items that would drag down your credit score are: ![]() And no, it won’t include your credit score but it should tell you why you have a bad credit score, which will be due to “bad” items in your report. If you were told this is why you were refused, the first thing you need to do is get a copy of your credit report from the three credit bureaus – Experian, Equifax and TransUnion. The reason why most people are refused credit is due to their credit scores. It can’t be vague and write something such as, “you didn’t fit our customer profile.” The Fair Credit Reporting Act (FCRA) mandates that if a lender refuses you credit, it must tell you why. Have you been turned down for credit? If so, you should have been told why.
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