After I pay off a debt on my credit report can it be removed completely if I ask the debtor?

Answer 1

I had paid off a couple of huge credit card bills & I asked the credit agencies to remove it & they all (Experian, Equifax + 1 other) said the same thing - - no, they will not completely remove it. They will only show that it was paid off. If it is negative credit you are dealing with ie., (judgements, late payments, missed payments) then it takes 7 years for it to come completely off. However, once I paid everything - I didn't seem to have any problems with getting things that required a good credit rating.

Answer 2

Yes, you can request the debtor to inform the credit bureau to remove the item. However, it is completely up to the discretion of the debtor. If the item is within the allowable listing time (usually 7 years depending on the derogatory item), you will have to wait until the time has passed if the debtor refuses to remove it.

Understand that the debtor cannot remove it themselves, they have to send a request to the credit bureau to remove it, and it may take the bureau some time (a month or more) to remove it. However, credit bureaus are only clearing houses of information. They have no say in what stays or goes on your report, their only obligation is to verify the items listed (negative or positive) as being valid items. If a debtor requests an item be removed, the bureau has to remove it.

The Fair Credit Reporting Act stipulates that an item (again, depending on the derogatory item) must be removed no later than 7 years, but there is no minimum length it must be listed. Most debtors (companies, vendors, etc.) hold onto credit information in-house for a few years at best (2-3 depending on the organization); but far less than the 7, and credit bureaus are required by law to verify any dispute or investigation you request about an item on your report. When you request an investigation into an item on your report, the bureau has to contact the debtor to verify the item and respond to you within a "reasonable amount of time" from the date of your request. This is usually 30 days. Therefore, if you request an item be investigated (even if it was a valid derogatory item) after the debtor has removed your information from their in-house records, they (the bureau) will have difficulty verifying the debt item within the 30 day "reasonable amount of time" frame, and therefore drop it from your report.

For further information you should read up here:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.htm

Answer 3

Usually the best you can hope for is a blurb added on your credit report that says you paid off the debt. Usually the original notation of debt itself can't be totally removed though....you have to wait several years for it to age off the report.

Answer 4

no. you have to apply at the credit agency to have it removed and i believe it cost money. or it my get done automatically after a certain time

Answer 5

yes but always be sure to get it in writing