2006-08-26 04:46:31 · 11 answers · asked by gypsy_jewels22 1 in Business & Finance ➔ Credit
Once a listing is placed on your credit report, the only way it can be deleted or changed is if the creditor does it.
When you pay a debt, all they are required to do is change the status to say "paid" but it will still reflect negative or derogitory information such as collections and late payments. This is still a bad mark on your history and will hurt your credit score.
Therefore, if your intent of paying the bill is to fix your credit history, it's not going to work, unless you get the creditor to agree IN WRITING to delete the entry before you pay them anything.
Yes, they can do it. It is not illegal and I've helped many people do it. If the creditor wants their money then they will work with you on fixing your credit.
Otherwise, you will still have bad credit, but now you are broke.
2006-08-26 04:56:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No it does not automatically come off. Many times you have to contact a credit reporting company like equifax and request that it comes off. Before it can come off though the reporting company has to report it as paid. Some companies only do this once every 90 days. You need to keep your proof of payment so that if it does not show up as paid you can provide proof to whom ever you are trying to get new credit from.
2006-08-26 11:56:27 · answer #2 · answered by harodkim 2 · 0⤊ 0⤋
are you talking about regular revolving credit (like a credit card) or a bad/outstanding debt
revolving credit usually states the outstanding balance of a credit card and how regularly you pay in full or make installments
a bad debt will stay on until it is paid, a certain time has elapsed since payment and you may have to contact the credit bureaus involved
2006-08-26 12:07:09 · answer #3 · answered by capollar 4 · 0⤊ 0⤋
Most major companies report to the 3 main credit bureaus on a monthly basis. So if you allow 15 days for the bureaus to post new information, you payoff should be reflected in 45 days maximum.
Kevin
2006-08-26 12:00:23 · answer #4 · answered by jkbjkb13 1 · 0⤊ 0⤋
Credit reports are a history. Everything stays on for 7 years. Amount owed, payments, on time record, etc.
2006-08-26 11:55:14 · answer #5 · answered by Barkley Hound 7 · 0⤊ 0⤋
No, even if the company reports it as paid on their own, it stays on your report as a paid debt for 7 years...so stuff like collections STILL hurts your score.
2006-08-26 11:57:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, it shows as a satisfied debt.
So, be careful about a lot of credit accounts, even if you keep them current or pay them off, since they stay there. It's a red flag for lenders.
2006-08-26 11:53:28 · answer #7 · answered by perk 2 · 0⤊ 0⤋
How to Clean Up Credit Report
Before approving your loan, your lender contacts the credit bureaus to get your credit report. Bad credit report will severely restrict your credit. In some cases, you may not even get the credit. So it is vital to get your credit report cleaned. To enable you to achieve that you have to alter your financial habits............
http://www.debt-loan-refinance-mortgage-credit.com/category/How-to-Clean-Up-Credit-Report.html
2006-08-27 08:34:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋
no you will have to send in the proof of payment and request it to be taken off of your credit report. Send it to the company who is reporting. ie experian, transunion
2006-08-26 11:53:28 · answer #9 · answered by Miss Vira 4 · 0⤊ 0⤋
No, it will merely show as an outstanding debt that was paid, if that. You may have to specifically request the notification.
2006-08-26 11:50:57 · answer #10 · answered by Anonymous · 0⤊ 0⤋