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How To Remove Negative Marks From A Credit Report

How To Remove Negative Marks From A Credit Report

Planning for an auto loan in the near future? Want to make sure your credit report is accurate and looks good? Seeing negative marks on your credit report and want them removed? Our Mississauga auto loan team outlines the options you have when you remove negative marks from a credit report.


Negative marks are left by lenders or creditors in response to various situations like missing payments, late payments or defaults. Some can impact your credit score, some won’t. All will be viewable by a hard inquiry, which any lender would do during an auto loan application.


Negative marks placed in error


Negative marks placed in error are difference to ‘normal’ marks. These have no right to be on your credit report so should be removed. You should request the organization who left the mark remove it as soon as possible. They should investigate and then remove the mark.


If they don’t, contact TransUnion or Equifax and outline the situation. You’ll likely have to prove it’s a mistake so be prepared for that. Otherwise, the credit bureau will contact the organization, ask them about the mark and remove it if it was in error.


This process is usually called a dispute, but that seems a little harsh. Whatever you want to call it, you do need to take action.


If negative marks are accurate, you have other options to have them removed.


Pay To Remove Negative Marks From A Credit Report


If you still owe money to the organization that placed the negative mark, you could offer to repay the debt if they agree to remove the mark. It’s a common tactic that works in the majority of cases.


Not every lender will agree but most will. Especially if they get their money back.


If you cannot afford to repay in full, offer a lump sum payment and higher monthly payments or other incentive for them to remove the mark. Get the agreement in writing.


Request a goodwill deletion


Writing a goodwill letter to the lender is another option. This is most effective once you have paid off the debt as the company will have more goodwill towards you than if you’re still in arrears.


The letter can explain your situation, why you were late or missed payments and what you have done to stop it happening again. Also mention you paid in full and request the mark is removed as a gesture of good will.


Ignore the mark and proceed with the auto loan


Your only other option is to wait out the negative mark or ignore it and proceed with your auto loan application. This does run the risk of having a loan application refused or paying a higher rate of interest but shouldn’t stop you accessing credit.


Depending on the mark, you may need to wait between 3-6 years for it to disappear.


Negative marks won’t stop you accessing auto loans but may give lenders pause. They may request further clarification or evidence that your situation has improved or that you have measures in place to stop whatever it was from happening again.


You should still get your loan though.


Contact Unique Chrysler for help, advice and competitive Mississauga car finance and leasing.


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Categories: Auto Loan

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