A derogatory comment is an entry on your report that says you are not a good credit risk. It is a big negative. Most people who are interested in lending to you (or are checking on your character) will look at the derogatory section of the credit report.

Some of the most damaging information you will find in the derogatory section of the credit report concerns bankruptcies and foreclosures. A bankruptcy will be on your credit report for up to 10 years. Both bankruptcies and foreclosures are the most difficult derogatory comments to dispute.

The second type of derogatory comment on your credit report are accounts that have gone to collection. If a creditor has sent your account to collection it will impact your credit report severely. A derogatory collection account comment can stay on your credit report for up to seven years.

The third type of derogatory comment are accounts that show a slow pay history or past due. Typically, this will be your car loans, credit cards, medical bills, or any other account that you have been late on.

Here’s the secret: the most effective technique in removing derogatory information on your credit report is to claim that the debt in question was not yours! Federal Law requires that upon your request, all creditors must show you written proof that the account in question is in fact yours. Written proof is a copy of the contract you signed with the original creditor. The fact of the matter is that most account information is stored on the creditor’s computer and chances are excellent that they have thrown out all the proof that this is your account.

The only creditors that may have proof are the courts (Recent Bankruptcies, Unpaid Tax Liens, Unpaid Judgments & Unpaid Child Support).

Federal Laws are in your favor. If you say an account is not yours and the creditor does not have written proof that the account belongs to you, they must remove the account from your credit file and cease all collection activity.

You should file your dispute in writing along with the basis for your claim. This starts the 30 day period in which the credit agency must respond to your dispute. They will make contact with the creditor and if the creditor fails to provide proof that the account was in fact yours the credit reporting agency must assume that your dispute is accurate and must remove the disputed item — the derogatory comment — from your credit report.

Claiming that a derogatory account is not yours is a very effective method of removing damaging information from your credit report.