A credit question?

Question

I am in the process of repairing my credit report on my own. I have paid off 3 accounts listed on my credit reports this year. I noticed that everyone saying that one cannot remove negative items from their credit report and must wait 7 years for the negative items to fall off. My question is if I am trying to clean up my credit report on my own, why does it takes 7 years for these items to fall off and a credit repair company will clear the negative item off in 30 to 45 days? I am not understanding this.

Answer 1

Paying off old debts will not just make them drop off your reports. Negative items stay on your reports for 7-1/2 years from the date of first delinquency that immediatley preceded placement for collection and/or charge-off. Paying them just gets them marked as a paid collection or paid charge-off.. still negative, still on your reports.

You can TRY negotiating a 'pay for delete'.. you pay IF they will delete the tradeline from your reports. Many collection agencies and junk debt buyers will say they agree to do it, but then never do and you have no legal way to make them. They get their money and run.

You can try to dispute the paid collections and you might get some off and you might not. Paid collections are some of the hardest things to get removed. Head to http://www.creditboards.com for ways to dispute paid collections.

The credit repair companies are a scam. Yes, they might succeed in clearing some negatives in 30-45 days, but there is NO guarantee that those baddies won't return, especially if they are valid. A credit repair company bascially spams the CRA's with disputes, which in itself is not a good thing. The disputes eventually get marked as "frivolous" and are ignored.

Some people who've used credit repair companies find that they lose GOOD tradelines too.. which is NOT what you want.

Disputing repeatedly as 'not mine' will also get your disputes ignored and marked as 'frivolous' and 'not mine' is NOT a sufficent dispute anymore.

You do not want use these companies and you do not NEED to pay them. Just learn the ways to do it yourself.

Answer 2

It depends on what the negative item is. If it is just a collection account, after payment in full you should insist that it be removed immediately. Write both the credit reporting agencies and the debt collector. However, if it is a revolving credit account, late or past due payments will show up for around two years. It will also report for up to seven years (usually less) how many times you've been late and the highest balance vs. the credit line. Consumer Credit Counseling is a non-profit company that might provide you some assistance.

Answer 3

By US law, they the credit reporting agencies are not allowed to keep records for more than 7 years. Otherwise, it would never drop off.

The good news is that it is a record of credit behavior over time. If you establish good credit behavior, that pattern will also be recorded. So if you have been paying off debts for 4 years steady and need to apply for credit, for buying a car or a house, etc. You can argue that case, and point out the improved behavior. This may result in explaining away the problem.

After 7 years, there is nothing to explain because of the laws, so things get easier.

Answer 4

Most of the companies that claim they can have something removed are scams. They just take a fee, send a letter and nothing happens.

If you have unpaid (open) accounts, they stay open until charged off. It doesn't matter if you pay them off or not relative to the credit report. ALL accounts show for seven years. By paying them off, you are raising the score of your report (FICO) but you are not changing the fact the account information is still there.

Think of it as painting a room in your house. You can add new colors, borders and wallpaper, but the old, outdated wall is still there underneath. It's going to be there. It just looks more attractive (aka higher credit score).

Answer 5

I've been cleaning my credit now for years. It is a process of disputing and negotiating bunch of items.My sister in law had credit repair business and gave me the skills. The credit repair company sometimes ain't completely sure that they can help you but they will do anything in their power. Some companies can do more than others. Here is a piece of advice:
1) if you want to clean late marks several times you have to dispute them and at first may get worst than better but eventually they'll come off;
2) if it is account you want to remove keep on disputing by saying its not yours, eventually they will either call you or the creditor may not have your file and the credit agency may have to remove it.
E-mail me if you have more questions.

Answer 6

You play, you pay! Why should credit company's automatically clear your bad record? How long have they carried your debt? And while they were carrying your bad debt anyone else that uses credit paid for it by having to pay higher interest rates. It is just the way it is. So go ahead and pay off your bad debts, because it is the right thing to do, but don't expect to have perfect credit over night. Everyone always has an excuse why they didn't pay the debt, I was sick, I lost my job, I got a divorce, Someone stole my card, blah blah blah. Be responsible!

Answer 7

The report will still show late payments etc. However, the accounts should report the payments you have made and that the accounts are now current. Recent information has a greater impact on your score that older info. You should probably check your report to be sure the good news has been reported.

Answer 8

If you use a "credit repair" company it will be treated like a bankruptcy on your credit report. DON'T DO THIS!! The best suggestion I could offer is checking out "The Total Money Makeover" by Dave Ramsey. It changed my life. Do the "baby steps" and you'll be fine.

Answer 9

Open up more credit accounts and pay off on time, you credit will be improved from other company.

Answer 10

Before you pay your debt off make an agreement with your creditor that if you pay your debt off in full that they will stop reporting it to all 3 credit bureaus. its called a deletion letter. Send them this letter first, then wait for their acceptance of this agreement then pay the bill. your creditor will send you a letter for you to send to all 3 credit bureaus. it wont be on your credit report anymore forever!! i did it