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Article by Jose Borges

Bad credit can definitely be a result of irresponsible money management. Many times, however, it occurs as a result of monetary hardship. It may happen that one-day you are all current with your bills and the next day you lose your job or become unable to work. If something like this happens and you fall behind on your bills, your credit rating will no doubt suffer.

All the best credit repair agencies claim to be able to remove bad entries from you report. Many are successful but it is possible to have them removed yourself if you are willing to do the work. There are two main methods by which you may be able to remove harmful entries from your report.

Method #1: Fix Credit Score by Filing a Dispute with the Credit Bureaus

Once a dispute is filled, credit bureaus are required by The Fair Credit Reporting Act to investigate any item that you dispute. If the item in dispute is found to be inaccurate, unverifiable or false, it must be removed or corrected. They have thirty days to complete their investigation.

If you feel that any information on your report is inaccurate, you should definitely file a dispute. However, many people have had luck getting items removed that were in fact accurate, including collections accounts and repossessions. If a disputed item is not verified within the creditors time limit (usually 30 days) then it must be removed.

To dispute an item on your report, you need to write a letter to each of the bureau’s stating that you dispute the entry. You do not need to explain why you are disputing an item. Of course, if the entry is verified, it will remain on your report. If the creditor verifies the information later than the 30-day time limit, the credit bureau could reinstate the item as long as they notify you at least five days prior to doing so.

This is basically what the best credit repair companies will do to help with credit reports. Depending on the number of items you wish to dispute, this process may require a ton of your time and a lot of effort. This is one reason people decide to pay these agencies. Another reason is that they simple don’t know that it’s possible to do it themselves.

Method #2: Fix Credit Report by Speaking directly with the Creditors

Sometimes it is very intimidating when dealing with creditors. Speaking to them directly can help in getting negative items removed from your report.

If you only have one or two late payments on you account, a creditor may be willing to erase the negative information after you begin a regular payment schedule. If you have repossession or a collections account on your report, payment in full may convince them to remove the entry. As they say, you will never know if you don’t ask. Requests to remove late payment information can be made as soon as you bring your balance current. But if you’re hopeful for a removal of a repossession or collection charge, it’s better to negotiate a deal in advance, before you pay anything.

If Bad Entries are not Removed

There is no assurance that disputing information on your credit report or negotiating with creditors will get harmful items erased from your record. If it does not, the best thing to do is try to build up some positive information on your report.

The first thing you need to do when trying to rebuild worthy credit is bring previous due accounts current. Attempt to work out a deal with your to accomplish this, or talk to a credit repair agency. Don’t miss payments on active accounts to put money toward those that are past due. Always keep the current account current.