If there are several credit obligations such as student loans, auto loans, or personal loans listed in your credit report, you may be asking yourself whether credit repair services can have such a list deleted. The short answer is no – legitimate credit repair services CAN NOT and WILL NOT attempt to remove loans from your credit report. Here's why.
The Advantages and Limitations of Credit Repair
Credit repair companies assist in identifying and challenging unlawful information that may be negative, outdated, or unproven so that you can have better credit scores. This can include:
- Inaccurate information about the account (for example, the balance and other information may indicate that an account is open when it has been closed).
- I have come across instances of duality in accounts or inquiries.
- Cybercriminals, hackers, accounts that are not yours (identity theft).
- Accounts that are not legally permitted to be shown on any accounting records (usually accounts more than 7-10 years old).
- Correcting errors in lat pay reported to credit bureaus
What credit repair services cannot do is delete information from your credit reports if that information is true, accurate, and timely and is hurting your credit score. This includes things like:
Credit or loan accounts that you rightfully applied for and for which you still own the monthly bills
- Foreclosures
- Bankruptcies
- Collections accounts
- Any delay in payments within the allowed number of days in the given period.
In other words, only the representation of your actual credit history can be changed legally and cannot be deleted by credit repair companies. Attempting to challenge such loans or other accounts and having the challenges removed could be fraudulent.
Why Loans Cannot Be Deleted or Erased When Performing Credit Repair
When one borrows, the technicality of the transaction is a contract, and you are legally bound to pay back the money as agreed. This loan and your payment record are then, regularly, reported to one or more of the three major credit bureaus.
Some legal requirements have to be fulfilled, for example, the fact that the lenders and the credit bureaus cannot report on paid-off loans after a specific period has elapsed. That being said, they can report the loan, the type of loan, the amount, their payments, and many other things that they wish. It is beneficial to the borrowers in the sense that it gives the lenders the chance to understand how the borrower handles various types of credit accounts.
Thus, credit repair agencies cannot attempt to remove a loan if it is reflected in timely and accurate information even if the loan is currently having negative effects on an individual’s credit scores. If you fail to pay the loan as agreed you may find it becoming a collection account which can remain in the credit report for up to 7 years after you default.
It is important to point out that occasionally errors in loan reporting are made, say if you have cleared an auto loan but the database shows that the loan is open and past due. Credit repair can then come in to negotiate with the credit bureaus to have the information corrected in case it is wrong or to contest the amount that is believed to be in arrears. However, they cannot move legitimate loans or try to alter the account details that are reported accurately to improve your credit scores.
Loans and How You Can Strengthen Your Credit
Rather than waste your time and money on those “remove my loans” companies that make fake promises, repair your credit the right way by paying all of your loans and other accounts on time and keeping credit card balances as low as possible.
If you currently have some problematic loans showing up on your report, here are some tips that may help:
Make required adjustments on customer accounts receivable and make timely payments on outstanding bills
- Reduce the amount of credit currently being used by paying off credit card balances
- Pay off other high-interest debts by consolidating them with a personal loan
- Substitute for student loans on more favorable terms through the federal program
- Find out when you can get student loan forgiveness
- Inform lenders of options on loan modification if you are unable to pay.
The bottom line
the credit repair companies are right, accurate loan information must never be deleted from the credit report. Thus, although you still have some debts, it is good information for the lending companies to know that you still owe them money. Milking them properly reflects a good credit history in the future.
The idea should be to use legal measures to repair credit by paying off the bills on time, paying credit card balances to a reasonable amount, scrutinizing credit reports for errors that can be challenged, and relying among other things on the time factor where certain negative credit information can be removed after a certain time. This will in the long run assist in the legal and fair elevation of the scores you desire.
Call now for expert credit repair services: (888) 803-7889
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