Negative credit listings are not created equal. Some items, such as late payments from a few years ago, usually have a minimal impact on your credit score. Other items like recent judgments or collections can be cold-blooded credit killers.
Here is a complete list of the negative credit items along with how much impact they have on your score.
The credit bureaus are allowed to list most negative credit for seven years. However, public records including tax liens and judgments are allowed to remain for up to ten years. That is why these items are the most severe.
Included in Bankruptcy also falls into the most severe category. If you filed bankruptcy these items are referred to as those discharged in the case. They are just as severe as the bankruptcy listing itself.
A single collection item can lower your score by as much as 100 points overnight. You should dispute any collection error as well as negotiate with the agency for a removal.
A foreclosure and a repossession can prevent you from getting credit for a home and/or car in the future. These are looked as very severe.
A charge off is known also as a "profit and loss write off" and is a very severe item to have on your report.
It is shocking how much a single recent late payment can reduce a good credit score. Your best move is to negotiate with your creditor to have this deleted from your report. A recent late payment is very severe.
You can sometimes convince a creditor to remove a 30, 60, 90, or 120 day late payment. However, make sure that your account is current and in good standing.
The credit scoring formula is biased more towards recent late payments. Older late payments should be given a low priority in your dispute process.
Incorrect Personal Information such as a wrong address or employer is not important. The credit scoring formula does not use this information to generate your score so it is less important compared to the items above.
In sum, dispute the most severe credit errors first. These include, among other things, bankruptcy, public records, and judgments. Then, move onto charge offs, collections, and recent late payments.
