One of our readers, Lisa, had this question:

I had a bankruptcy discharge in June of 2002. My credit scores are ranging between 637 and 675.

I am working, have a good job have reestablished new credit but keep getting refused for credit.

The main comment I receive is too many derogatory marks. Is there a way to remove these remarks?

Also one credit card company was purchased by another and they are showing a CO charge off for the account report in 11/2003, this was included in the bankruptcy,,,how can i fix my credit, i want to buy a house or a car. Any help would be appreciated.

Lisa, thanks for your question!

If you are being denied credit because of too many derogatory marks on your credit report, then the best place to start is by cleaning up your credit reports.

It’s easy to begin the process. Since you were denied credit, you are entitled to a free credit report with whichever credit bureau was used to make the decision. You are also entitled to one free credit report from all three credit bureaus each year.

To begin, just visit each of the three credit bureaus and create an account.

• Equifax
• Experian
• TransUnion

We have a complete step by step guide on how to clean up your credit report. You can find it, and download the walk through here:

Do remember not to challenge too many items at once so that your credit scores don’t get frozen. Just look at it as a process that may take several months to complete.

As far as the account that is showing charged off when it was included in your bankruptcy, that is the first item you will want to challenge. If the company can’t substantiate it, then the entire tradeline has to be removed from your credit report – that’s the best that can happen. The worst that can happen is the account will be corrected to say “Included in bankruptcy.”

Verifying some of these accounts may involve sending a copy of your bankruptcy discharge to the credit bureaus via certified mail. At the very least you will want to have your bankruptcy paperwork with you when you begin your disputes online. You will need your case number, the date of filing, and the date of discharge.

It’s a very simple process to clean up your credit reports, but it can be a little time consuming. Just schedule it out one day a month and challenge a few things each time.

This really is the best way to clear up your credit (after a bankruptcy, or any other time). If you have any questions about the process, or our guide, please feel free to leave a comment, and we’ll help you out.

Thanks for your question!

Another reader, Lenny, had this question about disputing correct items on your credit report:

I am all with you on taking the time and persistence to clear info off the credit report but what if none of it is actually false? I have bad info but that is because I missed payments etc. Should I still challenge it and under what grounds?

Should I try to clear any of the good but closed accounts or just leave them?

Thanks for your question Lenny!

Yes, you can challenge correct items on your credit report. You can challenge anything on your credit reports, for any reason if you choose to.

Some suggested reasons include:

• I did not authorize this account / I have no knowledge of this account. The credit bureaus make mistakes too, as do the credit card companies. With electronic signatures becoming very common, sometimes it’s hard for the credit card companies to prove that you really were the one that opened the account.
• The amount owed is wrong / I did not pay late - Usually you need documentation to back this up, but it’s not always necessary. It really just depends on whether or not the credit card company chooses to validate the debt with the credit bureaus.
• My name / address / information is incorrect - If anything is incorrect with the accounts at all then it is grounds to have the entire account removed from your credit report.
• Identity Theft - It helps if you have a police report to corroborate this, but it isn’t really necessary. Just citing Identity theft as a reason can be good enough to get the account removed from your credit report.
• This account was paid as agreed / was not charged off / included in a judgment or bankruptcy – This one may not apply in your situation, but it is the one that Lisa, the reader above, is going to want to use.

Best I remember, the last time I challenged an item on my credit report, it was as simple as choosing a reason from a drop – down list on the credit bureau’s website.

Also keep in mind that you can keep challenging the same items over an over if you want to. You can also include a statement on any item listed on your credit report. The statement won’t affect your credit score, but any lenders that actually view your credit report instead of making an automated decision will see what you have written there.

As far as removing the good accounts that were closed – I would leave those on there. Anything that says “paid as agreed”, etc. is going to benefit you rather than hurt you.

Thanks again for your question!

Have a question for us? Leave a comment below!

Keep Reading And Grab Our Free RSS Feed:

• Make A Statement (On Your Credit Report)
• Closed By Lender Vs. Closed By Consumer – Does It Matter?
• Should you pay for Credit Building Credit Cards?

This entry was posted on Monday, February 9th, 2009 at 16:48 and is filed under Clean Up Your Credit Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.