How Do I Make Bad Marks on My Credit Go Away?

Taking the ‘bad marks’ off your credit report is possible but you can’t just make them go away. Many consumer make the mistake of avoiding the bad stuff on their credit report until they need to apply for a credit card or other types of financing. But waiting until the last minute is not the way to make things better.

Here’s how to make bad marks on your credit go away in 6 simple steps:

1. Order Your Credit Reports
In order to know where you stand with your credit, you need to request copies of your consumer credit report from each of the three major credit reporting agencies, TransUnion, Experian, and Equifax. Every consumer with a credit history has the right to request a free copy of their report annually so take advantage of the deal and visit annualcreditreport.com.

2. Review Your Credit Reports
Take each report and go line by line to review the information listed. The information on the report will contain all the data from your creditors who report to the credit reporting bureaus including creditor name, contact information, balance remaining, total credit limits, and payment status. Because reports are generated by humans, there is an increase likelihood of human error. Mistakes on your credit report can be detrimental to your overall history and credit score.

3. Dispute Errors
Each of the reporting bureaus will have a resource for reporting mistakes and inaccurate information. Use the forms and other resources to file a dispute on the information. Credit bureaus are obligated to then launch and investigation by contacting the creditors for proof of the information being reported. If a creditor does not reply in a timely manner, the information will be removed. If they do reply, information will be corrected to ensure accuracy.

4. Verify Debts
When you reviewed for errors, it’s time to check into the accounts that are being reported in a negative light. You can contact the creditors directly to request a verification of the balance owed. The creditor must provide you with a statement in writing that confirms the total amount of the outstanding balance. This is especially important if your account has been turned over to a credit collection agency.

5. Start Contacting Creditors for Negotiation
Whether you have defaulted on payments or caused creditor accounts to be reported as negative, it’s now time to negotiate a better status with your creditors. You can either agree to make payments in full, arrange a payment plan, or settle your outstanding debts in order to improve the account status that is negatively affecting your credit. Whatever agreement you make with the creditor, ask for it in writing before agreeing to make payments. If your account is being handled by a credit collection agency, it may be in your best interest to contact the creditor directly. Ask your creditor if your payment agreement or settlement arrangement can be reported back to the reporting bureaus as being ‘paid in full’ or ‘paid as agreed’ to improve your credit standing. Not all will agree but some might. Get the agreement in writing.

6. Follow Up
After you have completed the previous steps to correcting bad marks on your credit, you should not halt the process until you have followed up on all of your actions to confirm your efforts have been worth it. Not all creditors will follow through without your additional intervention so get back on the phone if you have not received your confirmations and written agreements within 6 weeks.

Bad marks on your credit will remain on your credit report for approximately 7 years with some exceptions such as with bankruptcy which stays on a credit report for 10 years or longer. A consumer should be proactive about improving credit long before it is necessary. A good credit report not only influences a lender or a credit card company’s decision but may also impact your ability to get lower insurance premiums, your ability to rent an apartment, and in some cases, your eligibility for a new job.

Never fall for agencies claiming to guarantee overnight credit repair. There is no easy way to improve credit without taking the necessary steps so don’t waste your time or money on bogus agencies who can not possible provide the services they offer legally or effectively.

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