How to Remove Negative Credit Through Negotiation

If you have problems on your credit report, you may have already experienced the consequences of these problems. Poor credit can affect future loans sought, apartments desired to rent and even jobs you hope to acquire. The credit bureaus, Trans Union, Equifax and Experian, all reserve the legal right to report negative accounts for up to seven years. Therefore, it is only through the power of your persuasion that you can remove negative accounts from your credit report. This is most often accomplished with a goodwill letter.

Instructions

1

Pull a copy of your credit report to verify the negative accounts. Visit Annual Credit Report to get a free copy of your credit report. Circle the negative accounts. These will be listed in the Public Records section for judgments, bankruptcies or liens or in the Trade Lines section for delinquent or charged-off accounts.

2

Pay off any negative accounts first. The credit bureaus will absolutely not eliminate accounts that still report a balance. It is possible, however, to remove negative accounts that are paid in full.

3

Find the documents that corroborates the legitimate reason for the delinquency, bankruptcy or charge-off. If you simply got lazy and didn't pay, it is unlikely you will experience success at an attempt to clear these accounts. However, if you have a sound reason like a disability, unemployment or death in the family you might have an good opportunity to clear these negative items.

4

Draft a goodwill letter (see Resources). This letter should candidly address the delinquent and negative reports on your credit report. Use this letter to both describe the events leading up to the delinquency and to explain, in an attempt to appeal to the credit bureau employee's empathetic side, the circumstances that prevented you from paying on time. Ultimately a human being decides whether or not to eliminate accounts, so appealing to his emotions is in your best interest.

5

Photocopy all documents relevant to the delinquency. This could be income documents, W-2s, disability award letters, letters from physicians, letters from employers, laid-off notices or severance pay stubs. Do not send originals. Also, send copies of the credit accounts you hope to eliminate.

6

Send the goodwill letter with all corroborating documents to any and all credit bureaus reporting the negative account.

7

Wait for a response. The credit bureaus have 30 days to respond to your inquiry and another 90 days to take action on your claim.