Step 1: To dispute a negative item on your credit file you need to first identify the negative items that you want removed.

Once you know which items to dispute, DO NOT complete the Dispute Forms that the Credit Bureaus included with copies of your credit file that they sent you.

Be sure to include a copy of your credit file and keep the original for your records. Highlight or underline the items you are disputing. Mail the dispute forms to the address listed on each credit file.

To dispute an inquiry, simply write that you never applied for credit with that company.

Make a photocopy of your dispute letter for your records and be sure to send it by Certified and Return Receipt Mail from your local Post Office. Mail your dispute form to the address provided with your credit file. Repeat the above process for each item that you want removed or changed.

Step 2: After reviewing your updated credit file and finding that most or all the negative items have been removed, you may now focus on building a positive credit profile. Positive information will always outweigh a few negative items that may remain on your file.

Step 3: This technique is extremely effective in removing any negative information that was supposedly verified as correct after your dispute.

Important: Always remember that if the dispute is sent in from anyone other than you, the Credit Bureau will suspect that you have paid someone to repair your credit. This raises all sorts of Red Flags. Since they make so many mistakes it is imperative that they believe you are working alone and trying to fix a real legitimate mistake.

If there is a negative item that you want removed from your credit, such as a bankruptcy, charge off or collection account, you may want to write that this is NOT your account and you want it removed immediately.

If the account is now paid off, but was seriously past due at one time, DO NOT write that it's not your account. Instead, write that it is your account but was NEVER past due and you need it updated to say that everything has always been current.

An Extremely Powerful Technique...
This auditing technique is usually only practiced by attorneys. It would be very expensive to hire attorneys to do this for you. However, by following the instructions you'll get similar results as any attorney (you just won't have to pay).

If the Credit Bureaus were able to verify any disputed information as correct, it would remain on your credit file. So you'll need to contact the creditor who is reporting the information. The creditor who reported the item is listed on the left or bottom of your credit file. If their phone number is not provided, call directory assistance in their city and ask for the creditor's telephone number. Call and ask them to mail you written proof and documentation that this is actually your account, since you do not believe the account belongs to you.

Almost all creditors and collection agencies use computers to store information about debtors and they throw out original, signed contracts along with other original documents. This makes it easy for creditors to store and organize information BUT makes it impossible to actually prove the account is really yours and not just another mistake.

Federal Law requires that upon your request, all creditors must show you written proof that the account in question is in fact yours. Written proof is a copy of the contract you signed with the original creditor. As we explained before, you are stored on the creditor's computer and chances are excellent that they have thrown out all the proof that this is your account.

The only creditors that may have proof are the courts (Recent Bankruptcies, Unpaid Tax Liens, Unpaid Judgments & Unpaid Child Support).

Again, all Federal Laws are in your favor. If you say an account is not yours and the creditor does not have written proof that the account belongs to you, they must remove the account from your credit file and cease all collection activity. If they don't have written proof that the account is yours, there are two ways to get the item removed. (See Items A & B below)

Important
Only allow a creditor 7 days to get the proof into your mailbox (3 days to find it and 4 days for the mail). If it takes any longer they probably do not have proof and you should start taking the action listed below. If the creditor does supply you with all the written proof that the account belongs to you, go to Step 4.

Get The Edge Above Your Creditors
A. Contact the Attorney Generals Office in the city of the creditor who is damaging your credit. Get the phone number through directory assistance. Tell them that you have a creditor who is damaging your credit by reporting an account that is not yours. You have requested proof that the account belongs to you and they do not have it. They will contact the creditor and have the account removed from your credit file. This is free legal service and almost guarantees they will get the item removed.

B. If you want to make some money off of the creditor then take them to Small Claims Court. To do this, you will need to call your county courthouse and ask about the proper procedure to follow to get a court date. It's very easy and you can do it all yourself. You'll be asked to fill out one or two simple forms stating your complaint. You may want to write that you wish to remove the item from your credit file since it is not yours and the creditor has no proof that it is your account. After you receive a court date, mark it in your calendar and make sure to attend at the proper time, place and date. Bring in the receipts from the registered mail you used for your disputes along with your phone bill and sue the creditor for your expenses and emotional stress. Remember, if they do not have proof that this is your account you will win and the account will be removed from your credit file! Also, if the creditor is out of state and does not show in court, you win by their default.

So far, we have not yet heard of any creditor showing up in court. They are simply far too busy to waste time on one person when they have thousands of other people to be concerned with. You may contact an attorney in your area for a free consultation about what your rights are concerning your particular situation.

Step 4: If the creditor is able to supply the written proof you request, offer to settle the debt for 10 cents on the dollar provided that you have the money. If you don't have the money go to Step 5. If you owe $1,000, offer the creditor $100. If they refuse, tell them that you will file Bankruptcy and they will get nothing. This will certainly open them up to negotiating with you. Whatever you agree to pay them, it should be a lot less than you originally owed them. Do not agree to pay interest charges or penalties on past due or collection accounts.

Step 5: If you don't have the money to make payment arrangements, start back at Step 1 of this section. Remember that the laws are in your favor and you are legally allowed by Federal Law to dispute the negative items on your credit file every 30 days. You are allowed to repeat this process as many times as you wish until the Credit Bureaus cannot verify the item and must remove it. As you already know, the creditors do not have the staff to handle all the disputes they receive, so if you persist, eventually the items may be removed.

Sometimes the Credit Bureaus may sometimes reply telling you that they already verified the information as correct. If this happens, write back telling them that it's a Federal Law that they must verify your disputes and that you'll sue them for $5,000 for each dispute that they do not handle properly. Once they know that you are aware of your rights, they'll become very cooperative.

Extremely Important
If you agree to make payment arrangements with any creditor, do so only under one condition. The condition is that before you pay any money, the creditor must mail you a written agreement that they will report the account to the Credit Bureaus as current, paid off and never late! Otherwise, it may still remain on your credit file and may not be worth paying.

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