January 12th, 2010
Dear Credit Karma – Items On Credit Report
Dear Credit Karma,
How do I challenge items listed on my credit report, and will this help my credit score?
If you are challenging items erroneously listed on your credit report, make sure to dispute the items in question to all three credit bureaus. Clearing up mistakes on credit reports typically boosts credit scores anywhere from 5 to 50 points, though there is no sure formula of knowing how much your credit score will improve. Credit scores are calculated based on a complex algorithm, but we do know how certain derogatory marks can damage your credit and the Credit Simulator will give you a good idea of how your credit score can change over time if you take certain financial actions.
Dear Credit Karma,
Does your credit get restored after 7 years and when will you know?
If you are waiting for negative marks to fall off your credit report, your credit will not necessarily “restore” immediately– but it will help your credit score over time. Certain bad credit marks, such as charge-offs, delinquent accounts, and tax liens, will remain on your credit report for 7 years and ages out of your credit report after that time. Make sure the item has been accurately wiped from your credit report by ordering your credit report on AnnualCreditReport.com. Verifying your own credit history is the only way to ensure accuracy; just knowing your credit score won’t provide you with that level of detail. Once the item falls off and the rest of your report is in good standing, you will start to see improvement on your credit score.
Dear Credit Karma,
I have a credit score of 568 and some of the items are over 7 yrs old. Will disputing and having old baggage removed make a difference in my credit score?
Disputing “old baggage” will make a difference if you can succeed in having them removed from your credit report. Derogatory items, such as late payments and charge-offs, are deleted from credit reports after seven years, with the exception of bankruptcies, which remains for 7 to 10 years. Credit bureaus start the 7 year countdown from the Date of Last Activity or Date of Last Contact, which is listed under the account entry in your credit report. If there is a negative mark on your report damaging your credit score that you think should have already fallen off your report, investigate by looking over your credit report from all three credit bureaus to see when the 7 year term started. If the items have aged beyond the 7 year limit but remain listed, dispute the items with the credit bureaus.
Submit a question now, and maybe Credit Karma will answer your question on our next Q & A blog post!
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Very nice and accurate information. I didn’t realize you took questions and answered them.. very nice!