Top 5 Ways To Delete Negative Credit Items

You can choose to ignore bad credit if you have no plans to borrowing money or open a credit card account. But having good credit affects more than just your ability to borrow money.

Landlords often check credit scores before renting apartments, and utility companies may require security deposits from those with poor credit. Even some employers use credit checks.

Here are some strategies to consider:

5 ways to address negative items

1. Dispute Inaccurate Information.

Check your credit report for errors. If you find something wrong, like a late payment you made on time, file a dispute with the credit bureaus reporting it. You can also dispute directly with the creditor.

2. Goodwill Request.

If a negative item is accurate but resulted from extenuating circumstances (medical bills during illness), send a goodwill letter to the creditor explaining the situation and requesting they remove the item. Here is a sample goodwill letter.

3. Pay for Delete.

Negotiating a pay for delete involves negotiating with a creditor to pay off a debt (or part of it) in exchange for them deleting the negative entry. It's not always guaranteed, but it can be worth a try. Pay for deletes work mainly with collection accounts, not charge-off accounts because you may be able to negotiate with the collection agency to remove the negative item from your report after they receive payment.

4. Wait it Out.

Negative items typically stay on your credit report for 7-10 years, then fall off automatically. This is the simplest method, but takes time.

• Hard inquiries: 2 years
• Late payments: 7 years
• Charge-offs and collection accounts: 7 years
• Chapter 13 bankruptcies: 7 years
• Chapter 7 bankruptcies: 10 years

5. Credit Repair Services.

Credit repair companies can help dispute errors, but be wary of upfront fees or any deceptive practices. Check out these reputable credit repair companies for a deeper understanding of how they work to protect consumers’ credit rights and ensure that they have fair and accurate credit reports.

Fixing your credit can payoff in significant ways like qualifying for the lowest interest rates lenders offer and freeing up money tied up in paying security deposits when your credit is poor.