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Negative listings on credit reports have some of the biggest effects on your credit rating. A handful of delinquent payments can be the difference between getting a good interest rate on a mortgage or other type of loan and being required to make a large down payment just to qualify for financing. Major derogatory items like charged off accounts, liens, and foreclosures have the potential to drop your credit score so much that you will have difficulty getting approved for credit, regardless of the terms. So what is a person to do if there are damaging items on a credit report that shouldn't be there? Credit reporting mistakes do happen and damaging information gets incorrectly added to consumers' credit reports all the time. And what about negative listings that are accurate but there was a perfectly good reason for why they exist? Is it really fair to require that you live with a low credit score for up to a decade or more when the damaging listings on your credit reports were essentially outside your control? The Fair Credit Reporting Act gives consumers a few options for dealing with poor credit, and enforcing their right to a fair and accurate credit score. This includes your right to request free copies of your credit reports as well as the right to dispute items on your credit reports that you feel may be inaccurate, untimely, misleading, incomplete, ambiguous, unverifiable, biased or unclear. Another antiquated option you have as a result of this act is the right to add a 100 word statement to your credit reports explaining to creditors the circumstances behind negative items on your credit reports. The idea is that when referencing your credit reports, lenders will be able to take into account the reasons behind these negative listings when considering your loan application. What makes this statement antiquated is that these days, lenders rarely look at the individual items in your credit reports. In fact, they may never see your reports at all so your carefully penned 100-one hundred word statements would never even be read. On top of that, lenders are most interested in your credit score, which does not take the one hundred word statement into account. No matter how reasonable your justification is for having negative listings on your credit reports, your credit score will remain unchanged. The only way to prevent negative items from affecting your credit score is to have them removed from your credit report. One option people have for attempting to do this is the credit bureau dispute described in the Fair Credit Reporting Act. Additional credit repair options are made available through a number of other consumer protection acts targeted towards creditors and collections agencies.
Since 1991, Lexington Law has been helping clients legally dispute the questionable negative items in their credit reports and Lexington Law's credit repair services have assisted clients with the removal of millions of these negative listings. See LexingtonLaw.com for more information.
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