Can you Erase Bad Credit Legally?

One of the most common questions asked about repairing your credit rating is how to erase bad credit and if it is indeed possible? Well, there is a lot of misinformation on this very topic.

There are adverts and boasts of people and companies dotted all over the internet all claiming to erase bad credit legally – don’t be fooled. The sad fact of the matter is that if the adverse items on your credit file are indeed correct and truthful, then there is no legal way to fix them and thus erase the bad credit. If there are inaccuracies or expired items on your file then YES, these CAN legally be removed.

Most of these companies offering to help repair your credit score will charge you a handsome fee for doing something you could do yourself – simply and cheaply.
So what should you actually do? The first step in all aspects of credit repair is to obtain a credit report showing the current information which the various credit bureaus hold on you. See the links at the bottom of the page to read about credit scoring and where to obtain a FREE credit report.

Sit down with a piece of paper and go through the credit report with a fine tooth comb, looking for errors and inaccuracies, noting them down where applicable.
The next step is to write a letter to the applicable lender or creditor if one or more error exists, detailing the mistake in as much depth as possible and providing as much supporting evidence as you can muster. Follow this up with a letter to the credit agency from whom you obtained your credit report. In this you must again detail the errors in full and provide evidence. When sending documentation be sure to send COPIES of the necessary evidence and not the original paperwork. Also send it recorded mail, receipt requested to ensure that your letter has arrived safely.

The credit bureau is obliged to complete a full investigation of your complaint within 30 days and report back with any findings. It will take up your case with the creditor concerned and try to ascertain the accuracy of your dispute and whether your evidence verifies the claim. The creditor or lender has to reply within 14 days, again with information supporting their claim.

If, as you have implied that the bad item reported by them is erroneous or obsolete, the creditor will have to report back to the credit bureau with amended information. However, if for any reason, the creditor fails to respond or report any amendments within the 14 days the disputed information will be erased from your credit file.

By using this simple method, you may succeed in getting some old or adverse issues removed from your report. If the reply from the creditor is that the information is correct but that you still feel that it is wrong another option is to add a statement of dispute to your file. You can get this done by making a written request to the credit bureau or agency who must oblige. It will appear as a written statement alongside any disputed item on your file. Whilst not erasing the bad credit it will have a positive impact on your credit report.

Visit here for a FREE CREDIT REPORT.

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