Free Credit Repair Tips 4: Why You Should Dispute Your Derogatory Items

Free credit repair tips 4 shows you the coolest way to use a credit report dispute letter to improve your credit score. Check credit score and see for yourself that it has gone up with these tips.

There are some credit repair specialists who will charge you $700 or more to "fix" your credit. In fact, all they're doing is disputing derogatory items on your credit report in order to get them removed from your record.

So lets take our next tool from our doctor's bag, the microscope, and take a closer look at our credit report.

1. The item on your credit report is inaccurate.

In other words, you in fact don't deserve to have this item on your report. For instance, let's suppose there is an open collection on your credit report for $150, but you really paid it two years ago. If you dispute this item with the credit bureaus as inaccurate, you're exercising your rights under the Fair Credit Reporting Act to get this item taken off. Your creditor is required by law to verify items and report back to the credit bureau within 30 days.

If they find the item is old or inaccurate, they will tell the credit bureau and your item will be deleted. Sometimes you have to help prove to the creditor that the item is inaccurate (i.e. showing them a canceled check for payment), to have the item deleted off your credit report. You are now underway in your credit repair.

2. The item on your credit report is accurate but gets deleted anyway--this can happen for several reasons:

1. The creditor got paid and doesn't care to respond to the dispute from the credit bureau. They let the item get deleted by not responding. But guess what! Each collection item deleted can be worth 20-25 points in your favor. So, in other words, items are deleted when you dispute and the creditor doesn't respond. How often can I count on this happening? Usually this happens about 30% of the time. So its well worth using this free credit repair tips 4 and start the investigation.
2. You can talk to your creditor directly and ask them "do you delete?" In a collection agency, about 50% of the time they will "delete" - in collection lingo that means to delete the item from the credit bureaus once you pay. Sometimes you have to pay a little deletion fee. But remember, every collection taken off your credit is worth about 20+ points! Ask your collector if they delete.
3. If the item is accurate but your creditor doesn't "delete." Sometimes just calling the creditor and explaining you're buying a house or car, they will temporarily delete the item from your credit (this lasts about 6 months). They do this because they don't want to be hassled or sued over the item.

   Creditors know the purchase is important to you and don't want the hassle of you calling, writing, and disputing again and again. About 30% of the time creditors will delete your item temporarily.

This happened with a client who had a Visa card with two 60 days late and a mortgage with one 30 day late. He was able to get them changed. If creditors know you're buying a house, they'll often play ball to avoid hassles and lawsuits. If they don't play ball, fax them the same dispute letter every week asking them to delete. (See credit report dispute letters - Credit Bureau - Several Disputed Items - Example #2) Send it to the credit manager in charge. Also sent a dispute letter every 30 days or until the creditor grows weary and then they will delete.

Continue to dispute and use persistence. That the value of free credit repair tips 4, you can do the same thing the professionals do. If necessary, you can send a letter explaining you are going to file a complaint with the Federal Trade Commission ("FTC").

Proceed to free credit repair tips #5 next.

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