Call Your Creditors
Call any creditors reporting a derogatory item and ask them to remove it. When they refuse just repeat your request over and over without getting upset or angry. If this does not work then speak to a supervisor. Have a pad and pen ready and write down the date, time, the name of the person you spoke to and their remarks. Do this over and over with each creditor. In many cases this works.

Confirm Agreements
Make sure to get a letter or fax confirming the creditor is correcting the derogatory information. You’ll need this letter if they don’t make the changes. You can use the letter to go straight to the credit bureau and they will remove the derogatory item based on the letter. If you are applying for a mortgage around the same time your mortgage lender will need these letters if the changes do not yet appear on your credit report. When it comes to charge off or collection accounts don’t send a check hoping they will remove the item from your credit report, they won’t. Call the creditor and offer to pay the account in full. Provide an explanation of why the item should not have been reported on your credit report. In exchange for payment ask them to provide you a letter deleting the item completely from all credit bureaus. Have them fax you the letter. Again, make certain to document all conversations. Many times this also works.

Disputing the Report
If a derogatory item is definitely not yours and the creditor does not agree to delete it, call the credit bureau (write to Equifax). Do not talk about any derogatory items that are correct or partially correct items which you should dispute by mail. If acknowledge anything being correct at all, you cannot dispute it later by mail.

Derogatory items that are yours must be disputed by mail. Write a letter to the credit bureau in question including your name, social security number, address, disputed accounts and account numbers. Inform the credit bureau you are disputing the information as it appears on your report. Be sure to sign your letter.

Errors on Your Report
Many items on your credit report may have errors. Do not admit to anything being correct, just note all errors. Next to each item write, "not mine, not accurate, mistaken item, complete error," or whatever is makes sense. Along with the marked up credit report send a dated letter asking for a corrected copy of the report within 30 days. Send another letter if you do not receive a reply within 30 days. Include a dated copy of your original letter as well as a new letter insisting they remove the disputed information. Include a copy to the Federal Trade Commission.

Do Not Call the Credit Bureaus - Write Letters
If the credit bureau writes asking you to call, don’t. They will record your call. Write back with copies of your original dated letters, reminding them of the original date you sent your first letter. Keep copies of all letters to and from the credit bureau and follow up until resolved. Don’t give up because perseverance will pay off. Credit bureaus must send your dispute to the actual creditors. They have 45 days to reply. If they don’t the item must be removed. If they do reply at a later date with information proving the credit report is correct, the item will be put back on your credit report.

Bankruptcies
If you have filed bankruptcy in the past, the items that were discharged will usually show up as a charge-off or uncollected debt. You should write to the credit bureaus and send a copy of your complete bankruptcy papers asking them to show the debt as "discharged in bankruptcy." Lenders will want to see that these debts were in fact discharged and this also raises your FICO score. FICO sores above 620 make it easier to obtain mortgage loans.

Conclusion
If you expend the time and effort you may be able to significantly improve your credit report even if you are not able to clean up every item on your credit report. Your credit report and credit score determine which loan programs you qualify for and the interest rate you’ll pay.

If you have or believe you may have credit problems, or even if you have great credit , I would suggest that you sit down with a mortgage lender, go over your credit report and make a loan application before doing anything else. You’ll want to address any problems now and get pre-qualified or better yet pre-approved so that you’ll know exactly where you stand. In many cases derogatory items that are 12-18 months old will not be considered if your credit since then is clean and you have good reasons for the previous trouble.