Many people have never heard of the term early exclusion. However, know what it is can help you increase your credit score. In this article, we discuss what an early exclusion is and how can it help you in your efforts in the road to rebuilding your credit.
What is An Early Exclusion And How Does It Work?
In short, an early exclusion is when a credit bureau removes a negative item from your credit report before the removal date. Your credit report displays all your accounts both positive and negative such as credit cards, loans, collections, etc. Negative information can stay on your credit report for 7 years.
Each credit bureau assigns a removal date of when that negative information will be removed from your credit report. The clock on this date begins with the first date of delinquency. For example, let’s say you have an account that was 30 days late on October 15, 2018. Then 60 days late on November 15, 2018. The removal date would be October or November of 2025 (depending on the bureau).
In this case, you can request that the negative information be removed due to the account being “no longer liable for this account.” This works great for collections, charge-offs and bankruptcies. Late payments are debatable. Some have had success while others haven’t.
What Are The Timelines?
The time frames of an early exclusion varies by credit bureau. With Transunion, you can dispute negative accounts up to 6 months early. Experian, up to 3 months early. Equifax, up to 1 month early. However, Equifax is very stringent. Many times, they will not delete the negative information early. With that, it doesn’t hurt to try.
How To Complete An Early Execution?
There are 3 options to the early exclusion process. First, you can call the credit bureau and ask “I’d like your help in deleting some old tradelines from my credit report.” Additionally, you can dispute online or by mail. There is debate about disputing online, but it has worked for many people to remove negative information fast.
To begin the process, you will need your credit report from each bureau. You can submit a request for your credit report on annualcreditreport.com. Once you have your report, not the “Removal Date” for each account. If you are within the period for the bureau, file a dispute.
If you are disputing online or by mail, you can use the following terminology.
The following collection account is scheduled to fall off my credit report on 06/2024. I would like for the account to be removed because this account is too old to remain on my file.
Having this negative information removed from your report, can help to improve your credit score. This is especially true for charge-offs. Balances on credit card charge-offs are included in your credit utilization. Since credit utilization makes up 30% of your score, you can see a huge jump. Equally important, removing the charge-off will improve your payment history. Charge-offs include late payments. This is the main reason for the charge-offs. The account was 30 days late, then 60, then 90, etc. Due to the fact that your payment history is worth 35% of your score, you’ll see another boost.
