If you've got negative information on your credit report, known as derogatory items, you may be able to remove them, thanks to the Fair Credit Reporting Act. This act gives you access to a free copy of your credit report and requires that credit reporting agencies provide easy-to-understand instructions to challenge negative information on your report.
The Credit Reporting Agencies
Three companies collect information about your credit and distribute it to potential lenders. They are Equifax, TransUnion and Experian. Visit their websites to obtain a free copy of your credit report at least once annually. You can check your score more often using a paid service. Each credit reporting agency provides the same basic information.
Your Credit Report
When you receive your credit report or gain access to it online, check it to make sure all of the information on it is correct. Your credit report will contain data about you, such as your name, current address, previous address, current employer, previous employer and social security number. Your report will list current and past lenders, including credit card companies, mortgage lenders, auto lenders, retail stores and other business where you've used credit. Check to make sure your credit history is accurate.
Derogatory Information
In addition to listing your credit accounts, your credit report will tell potential lenders how you managed your credit. Each credit account which show your payment history. If you have any late or missed payments, that information will show up under the account or accounts connected with those payments. In addition to this information, your credit report will contain information about any bankruptcy, liens, debt consolidations, collections or defaults you have.
Removing Derogatory Items
You may only have incorrect information removed from your credit report. If you missed a payment or have a bankruptcy, you may not have that removed. If there are special circumstances regarding a derogatory item on your report, you may leave a comment that lenders will see when they pull your credit report. To remove incorrect information on your credit report, follow the instructions on the credit reporting agency's website to have it begin an investigation. A derogatory item may not appear on all three of your credit reports, so check each one separately and report each one separately. You should receive a response to your investigation within 30 days. If the reporting company declines to remove the item you've requested be removed, you may have it marked as a disputed item and add a comment concerning it, or file a lawsuit.
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