Lauren Smith, WalletHub Staff Writer
@laurenellesmith
You may have a derogatory mark on an account with a $0 balance because of a previous negative event such as a late payment, a debt sent to collections, or a serious delinquency. Most negative marks can remain on your credit report for 7 years, even if you pay off the account or close it.
Addressing Derogatory Marks On Your Credit Report
- File a dispute to correct errors: If the derogatory mark is a mistake, you can file a dispute with the three major credit bureaus. The bureaus typically respond to claims within 30 to 45 days. Just bear in mind that accurate entries cannot be removed from your credit report.
- Make a goodwill request: You can ask the creditor to make a goodwill adjustment. If a creditor agrees to a goodwill adjustment, the company removes a legitimate negative item from your account as an act of kindness. They’re under no obligation to do so, but goodwill requests are successful in some cases.
- Wait for the effects to wane: It is important to note, even if the negative item is not removed after you file a dispute or make a goodwill request, the credit-score impact will lessen over time. If you keep the account open with a $0 balance, a positive entry is added to your payment history each month, which can help offset past mistakes even sooner.
You can check your credit report and get personalized credit-improvement tips for free here at WalletHub.
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