4 Easy Ways To Remove Derogatory Items From Your Credit Report

June 21, 2021

To err is human. You and I both might have made late payments or missed a few payments. They happen sometimes even though we are extremely conscious about our debts and have the best intentions. There’s nothing wrong with that. Debts can get a little too overwhelming. However, having these negative details – also called derogatory marks – are unfortunate glaring reminders of your past financial mistakes on your credit report. If you have such an old, delinquent or otherwise negative account in your credit history, you may be wondering how to remove derogatory items from your credit report. 

In order to help you out in the process of fixing a derogatory credit on your report, I have curated this list of all possible ways. Following these ways will definitely remove the negative items. You must also know that removing derogatory items on your credit report will help you increase your credit score and enable you to grab further loans at a lower interest rate. 

If you are not aware of the exact meaning of ‘derogatory marks’ then do consider reading this blog as well: What Are Derogatory Marks On Credit Report?

How To Remove Derogatory Items From Your Credit Report | Removing Things from My Credit Report

Following are the strategies to remove derogatory marks from your credit report. 

Check For Inaccuracies

Before you try any of the following strategies, you should first ensure the negative entry on your credit report doesn’t include any sort of inaccurate information. More often than not people’s credit reports contain at least some errors.

The trick here is to spot any errors on each negative entry. Just because the entry itself is accurate doesn’t imply the details about the entry on your credit report are free of inaccuracies. In fact, when you look closely, you are likely to find an error. 

The first step is to seek a copy of your credit report from each of the three credit bureaus — Equifax, Experian and TransUnion — and look over each entry and check every detail against your records. When you find an error, make a note of the inaccurate information along with how the entry should be corrected. These details provide the grounds for your credit dispute letters. Hence, this is the first and foremost way to remove accurate negative items from credit reports.

Submit A Dispute To The Credit Bureau

If you find any discrepancy in your credit report, you can always file a dispute with the credit bureau to have it removed. This is the next step on how to remove derogatory items from your credit report. 

The federal Fair Credit Reporting Act (FCRA) requires credit bureaus to report only accurate information on your credit report and because of this provision, you can dispute errors with them. 

Credit report disputes are easiest when made over the internet — online or via mail. The credit bureaus are required to investigate disputes related to trade lines within 30 days of the filing date. To make a dispute online, you should have ordered a copy of your credit report recently. You can also submit a dispute with the credit bureau which provided the credit report.

Send A Pay For Delete Offer To Your Creditor | How To Remove Derogatory Items From Your Credit Report 

If you have accurately reported negative information then you have to approach this situation in a different way. Credit bureaus won’t remove accurate, verifiable information easily. Hence you may have to negotiate to have these negative items removed from your credit report.

Pay For Delete offer is a technique you can use with delinquent accounts. In this negotiation, you voluntarily offer to pay the account in full in exchange for having the derogatory marks removed from your credit report. Many creditors happily take this offer. 

Make A Goodwill Request For Deletion

If you do not have money to use as a bargaining chip then you can always resort to a simple request. All you have to do is ask for mercy by requesting a goodwill deletion. 

In a letter to the creditor, consider using the following points below to get sympathy from the representative.

  • Explain that you were going through a very difficult financial time and since then you have made all the payments on time.
  • Tell them that you learned your lesson and always make payments on time now.
  • Discuss how your credit mistakes from the past are holding you back even though you have good financial health now. 

Creditors don’t have to comply and some won’t. On the other hand, some creditors will make these deletions if you talk to the right person — in some cases the supervisor.

Suggested Read: Important Tips For Dealing With Debt

Wait Out The Credit Reporting Time Limit | How To Remove Derogatory Items From Your Credit Report 

If all of the above-listed ways fail then there’s just one final way in which time has all the work to do. Your only option now would be to wait for those negative items to fall off your credit report. Luckily, the law only allows most negative information to be reported for seven years. The only exception is bankruptcy, which can be reported for up to 10 years. Fortunately for older accounts, a lot of time has already passed and seven years may not be all that far away. After seven years, the late payment history will be removed automatically.

Bonus Tip: At present, you can do your bit in improving the credit by making timely payments on accounts you still have open and active.

With this, we come to the end of this blog. Good luck and always try to maintain a good credit report. 

Thank you for reading this blog ‘How To Remove Derogatory Items From Your Credit Report’. If you enjoyed reading this blog and would like to continue reading more about debts then do check out our following blogs.

AaliyaWitten by Aaliya A piquant and humorous writer with the love to scrawl and create. For me writing is supreme. To believe that I can give words to my thoughts and connect to people through it is extraordinary.
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