Dispute Inaccuracies

• The goal of the FCRA is to provide all consumers with the most accurate credit records possible. Because of this, the FCRA contains a provision permitting consumers to file credit bureau disputes requesting that each bureau investigate and remove inaccurate information within their credit files. You can dispute inaccurate information with the credit bureaus by mail or by phone. After receiving your dispute, each credit bureau attempts to verify the information with the creditor who reported it. If the information is inaccurate and unverifiable--or the creditor does not respond to the credit bureaus' inquiry--the bureaus will remove the disputed item from your credit records. Provided the item you disputed had a negative impact on your credit rating, having it removed will improve your credit scores.
  
  

Goodwill Letters

• The credit bureaus will not remove negative information on your credit report if the information is accurate. Your creditors, however, have the ability to modify any information that they reported. A goodwill letter is merely a written request that your creditor remove negative information it previously reported on the basis of your good behavior and long standing as a customer. For example, a consumer who typically pays on time may send a goodwill letter to his credit card company requesting that it remove a one-time missed payment.
  
  

Paid Deletion

• Collection accounts are a common feature of damaged credit reports. In the interest of recovering payment, certain collection agencies agree to delete their negative reports if you agree to a lump-sum settlement or pay off your balance in full. Because a collection account has a negative impact on your credit rating, having it deleted improves your credit scores.
  
  

Responsible Debt Management

• Your most recent activity with your debts has the greatest impact on your credit rating. Although old derogatory entries still affect your credit scores, the FCRA dictates that all credit information can only remain within your files for a limited amount of time--usually seven years. Making timely payments and maintaining low balances on your revolving accounts, such as credit card accounts, demonstrates responsible debt management and helps you build a positive credit history. The longer you participate in responsible debt management, the more your credit score will improve.