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).
If your credit is a mess, chances are you have a variety of bad credit listings such as charge offs and collections. Some items are more damaging than others.
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.
Included in Bankruptcy also falls into the most severe category. If you filed bankruptcy these items are referred to as those discharged in the case. They are just as severe as the bankruptcy listing itself.
A single collection item can lower your score by as much as 100 points overnight. You should dispute any collection error as well as negotiate with the agency for a removal.
Foreclosure/Repossession are likewise very severe. These listings are severely damaging to your score and can keep you from getting the next mortgage or car loan.
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 surprisingly is equally bad as a charge off. The more recent a black mark is on your credit report, the more it lowers your credit score. Multiple late payments only make matters worse. The credit bureaus interpret multiple late payments as signs that you are having a 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.
You should ignore old late payments if you have any items that are more severe. Leave these items alone until they are the only negatives that remain.
Do not lose any sleep if the credit bureaus are listing old personal information. It has no impact on your credit score.
With all that being said, I suggest that you review your credit reports and begin dispute the inaccuracies that are considered very severe. As you receive your results, focus on the less damaging items such as old late payments. This method will assist in quickly improving your credit score.
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