Credit Report Repair

If you are searching for information on repairing your credit report - you first need to be aware of a few things.


1. Negative Items do NOT have to remain on your credit report for 7 long yrs. In fact 7 yrs is the MAXIMUM amount of time - there is no legislation or rules about the minimum amount of time an item can remain on your credit.


2. Often one negative item can become multiple negative marks on your credit and then your credit score is completely tanked. For example; lets say you have a credit card with capital one that gets charged off. Your credit report will now have one negative item listed on it from Capital One.


Next Capital One will sell your account to a collection agency for instance NCO Financial. Now, you have two negative items on your credit report. And if you don't pay NCO Financial they will turn around and sell your account to another collection agency. Thus, totally tanking your credit score because you now have 3 negative items on your credit report.


This is not unique to Capital One or any collection agency - however it is standard in our economy and the world of debt in America. The number of times your account is sold depends on the amount. For instance a debt of $10,000 is going to be sold more times than a debt of $1,000.


3. Just paying your old debts will fix your credit - NO, nothing could be further from the truth! It may make you feel like a better person but it will DO NOTHING to help improve your credit or remove those negative items from your report. Even if you pay an old debt the negative items will still remain on your credit report.


Instead you must negotiate with debt collectors. You need to get them to agree in writing that they will stop reporting this negative account to the three credit bureaus, once you agree and pay your settlement amount. In is a good idea to write on your check (payment / settlement) that upon cashing it the collection agency will stop reporting your negative account.


This way when you dispute the negative item with the credit bureaus. The credit bureaus will contact the collection agency or whomever holds the old debt and ask them to verify the debt and that the negative item is an accurate listing. However the collection agency will not verify this account because they agreed not to due to your settlement payment. Therefore the credit bureaus will be unable to verify the negative item and by law will have to remove it from your credit report!


While it's incredibly important to remove negative items from your credit report it is also vital to create new positive items. Often it is easier to remove some negative items and then open some new lines of credit because you won't have to pay so much money in high interest rates and / or fees because your credit should be in a little better shape after removing some negative items.