Consider using a low-limit Credit Card as a strategy of monthly borrowing and repaying. It works wonders. Page Summary: Removing a Default from a Credit File is not easy but it's not impossible either. This page looks at a strategy to try to get a small default of under £500 removed. Common sense would suggest that a Default of £500 is not as bad as one for £5,000.
But the lunacies of credit files, or rather how a potential lender reads a credit file, mean that a £500 default is as bad as one for £5,000 or even £10,000. Unfortunately it's the appearance of the word ' default' on a credit file that does the damage not necessarily the monetary amount. However, I have seen people enjoy more success in trying to have defaults of less than £500 removed than for larger amounts by using what is the so-called ' sympathy strategy'.
Feb 27, 2010 can i get defaults removed off my credit file? Debt-Free Wannabe. Remove Defaults from your Credit Report. You cannot afford to have defaults on file and have basic. Work with the lender to try to get the default removed.
The 'Sympathy strategy' - What is it - How it works A Default remains on your Credit File for 6 years and that's a long time in financial purgatory for a debt of less than £500. And it's especially so for a default of less than £100, which disgracefully many companies have issued in the past. The lowest I've heard of is £0.39 issued by the Alliance & Leicester, and no that's not a mis-type. © 2018 LearnMoney.co.uk All rights reserved The information on the LearnMoney.co.uk website has been compiled from sources believed to be reliable, but is not warranted to be accurate or complete. All recommendations and comments are provided for general interest only and should not be construed as advice.
Professional advice should always be sought before buying or investing in any financial product. The price of securities and any income from them can go down as well as up. Past performance of a security or market is not necessarily indicative of future trends. Any opinions and recommendations on LearnMoney.co.uk are given in good faith, but without legal responsibility and are subject to change without notice.
I was recently refused a loan. Upon further investigation, I found that I have a default on my credit report from O2. My contract with O2 ended 3 years ago. The default was put on this year but I had received nothing to inform me that there was an outstanding amount to be paid, neither at the end of the contract.
I was recently refused a loan. Upon further investigation, I found that I have a default on my credit report from O2. My contract with O2 ended 3 years ago. The default was put on this year but I had received nothing to inform me that there was an outstanding amount to be paid, neither at the end of the contract nor in the 3 years since. As far as I'm concerned I settled my account with O2, but will pay the default to clear my credit record, if this is guaranteed. How do I pay? Will this clear my record automatically?
If not what is the process for requesting the default to be removed? If you paid then you should have a record of it, right? As far as removing marks from your credit report/s, it is up to you to supply them with the appropriate documentation for review.
First pay the default and then request a receipt that says zero balance or paid in full. Then send this in to all 3 reporting agencies. If after a month they have not made the change you may then just tell them to remove the mark altogether. To pay a default, contact the company and find out where your contract was sent.
I'm sure they will provide this info. Creditors or collection agencies are the only ones who can notify the big three credit bureaus to remove anything from your credit report. Also, they don't have to tell you they're putting a collections notice on your credit profile. The first thing you need to do is see if the negative information is on all three reports. I would also suggest a service such as MyFico.com to see EXACTLY what your credit score is and how it can be improved.
Then you need to contact the company and need to get them to agree to remove the negative information if you satisfy the debt. Make sure you talk to a supervisor since the rank and file employees are NEVER going to agree to do this. And get it in writing. You also need to know if their debt has been turned over to a collections agency or if the company you did business with is the one who reported the default. In some instances, you can make an arrangement to pay the original company the outstanding debt directly, and in turn have them notify the collections agency to stop any collections efforts or negative credit information, but most will have already washed their hands of the whole thing and tell you to take it up with the agency handling the collections. Then you need to try to take your fight to the collections agency. Here's your slight bargaining chip: All negative information comes off of your credit profile in 7 years.
Whether the debt is paid or not! If they are not willing to remove the negative information, tell them there's no incentive to pay if they're not going to remove the collections.
Everyone wants their money and they may be willing to make this deal with you. I was able to pull this off after I got in over my head after college.
Why Was A Debt Removed From My Credit Report
I was both successful and unsuccessful, but again, after 7 years, it didn't matter anymore. A single collection account shouldn't be enough to destroy your credit profile if you have other positive information.
If this debt from O2 is already three years old, you should be able to build up a good credit history with other creditors within the next 4 years to offset the collection. Use your credit cards for small purchases that you can pay off at the end of the month. Be careful with applying for new loans or credit cards, every time you apply for credit, you are sinking your FICO score. Step one is to contact O2 and ask for documentation that shows the money that you owe and why you owe it. Once you have received that you can go one of two ways. If this is a false charge and you have documentation to back that up, contact the company, provide the documentation and tell them that you don't owe the money and ask them to remove this default from your credit report.
If they won't remove it, then dispute this default directly with the 3 credit reporting agencies (there are forms on their website). If this is a true charge, make arrangements with O2 to pay it off and ask them to remove the default from your credit report with all 3 agencies. Unfortunately, they don't have to do this. They should have to change it to reflect that you paid off the default, but sometimes they won't even do that.
If they won't, you're back to contacting the credit agencies and disputing it yourself. The best thing to do is to stay vigilant with these guys and get them to do the work. If they don't, you will have to do some paperwork yourself. You do need to contact the company that you owe money to and take care of that. It will however stay on your credit report, however - you can send the following letter.
You do not have to state the inaccuracy - and if the O2 does not respond within the alloted 30 days the credit bureau is required to remove the entire file from your report. You will need to do this with all 3 credit bureaus. Date (From) (To) Credit Bureau RE:. In reviewing the attached credit bureau report issued by your agency, I have detected an error regarding the following account(s) in that it is reported inaccurately. Company Name:. Account Number:.
Under the provision set forth in the 1977 Federal Fair Credit Reporting Act, I hereby request your agency to prove to me in writing the accuracy of the reporting of this account. Under the terms of the Act and succeeding court cases, you have 30 days to prove such accuracy or remove the account entirely from my report. I ask that you do so. You will note that this letter was sent certified mail, and I expect a response within the said 30-day period. Should I not hear promptly from you, I will follow up with whatever action necessary to cause my report to be corrected.
Please feel free to call me if you have any questions. My home phone number is , and my office number is. Sincerely(Signature) Collection Source(s) All information is removed that is 7 years old except Chapter 7 bankruptcy which stays on 10 years. An updated version of the Act requires a credit bureau to remove all inaccuracies with 30 days of notification of such inaccuracies. To clean your credit report of inaccurate information, you should write a separate letter for each inaccuracy, staple a copy of your credit report to each letter, and circle the account number. Note: You should request that “inquiries” be removed also. All of these letters should be sent certified mail return receipt requested to prove when they receive the letter.
If the credit bureau does not prove the accuracy of the account within 30 days, you should request they remove the entire account from your file. You will have to be assertive after the 30 day period.
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