Negative Listings and How You Can Remove Them

Credit correction is not accomplished overnight and so the order in which you dispute items is very important (especially if you are on a deadline to raise your credit score).

Negative credit listings are not created equal. Some items, such as late payments from a few years ago, usually have a minimal impact on your credit score. Other items like recent judgments or collections can be cold-blooded credit killers.

Ordered below is the list of negative items as they correspond to their severity.

A judgment or public record (including tax liens) are the worst item. This is because they can stay on your file for ten years.

Any credit cards or other debts that were discharged in bankruptcy are listed as "included in bankruptcy. These listings are just as severe as the bankruptcy listing itself.

Collection items are very severely damaging. Try to negotiate with the agency for a complete deletion. You do not want to have a paid collection, or settled collection on your credit file.

Banks may not extend you credit for a new home or car if you have a repossession or foreclosure on your report. Try to remove repossessions and foreclosures as they fall into the very severe credit listing category.

Charge Offs, especially recent charge offs are indications of a very severe credit risk. A charge off can often lead to multiple negative credit listings. The original creditor will list the "charge off" as well as the subsequent collection agencies that purchase the debt.

A recent late payment is especially bad for those people with previously good credit. It can instantly lower a credit score that you have spent years to establish. The scoring formula believes that a late payment may be a sign of impending financial meltdown.

A 30, 60, 90, or 120 late payment is considered moderately severe. The later the payment, the tougher it is to remove from your report. However, one or two late payments can often be negotiated away with the creditor.

The credit scoring formula is biased more towards recent late payments. Older late payments should be given a low priority in your dispute process.

Do not lose any sleep if the credit bureaus are listing old personal information. It has no impact on your credit score.

In order to quickly clean up your credit report, you must challenge the most severe items first. It does no good to focus your time and effort on insignificant items like your employer or address.