Can Credit be Erased: Learning about Credit Reporting and Credit Repair
It is shameful that when you have bad credit, you find yourself in a helpless situation when applying for loans and credit cards. Any payments received after the due date, collections accounts, or even bankruptcy will remain on your credit reports for several years. Is there then an honest, legal way to remove every single blemish to the point that no one would know that there is a record?
To answer this question briefly, the answer is no; thus, there is no shortcut to having a bad credit score wiped clean completely. The major credit reference agencies including Experian, Equifax, and TransUnion are legally bound to provide accurate information and are allowed to report certain negative items for a specified duration before they are allowed to delete them from your credit record. The only consolation, however, is the fact that such options remain legal and effective for credit repair based on sound financial practices.
How Long Credit Reports Contain the Information
As per the guidelines set by the FCRA, the credit bure EOS can report most negative information for seven years from the date of the first on-time delinquency that resulted in an account being placed for collections, charged off by the lender, or reported as a loss. Bankruptcy can be reported for up to 10 years, which is the time it takes for the credit history to start anew.
However, you will have to continue to pay for the sins of past credit mismanagement for years, though it will not affect your score as much if you have established good credit in between. For instance, a payment that was received 5 years ago will have less of an impact compared to a payment received 5 months ago.
The following are items that are not allowed to be reported on credit reports:
Most negative information is accurate and must be reported for the entire period you agreed on and approved when opening the credit line, but federal laws like FCRA also give you rights over information that is outdated, false, or unverifiable. Things not permitted to stay on your credit reports include:
- Accounting errors, status, dates, balances, and the like.
- Unauthorized accounts, (the account holder has to produce a death certificate, or any other relevant document to prove that he or she has been embezzled by the said person).
- Data originating from an incidence of identity theft that was committed more than 7 years ago
- Losses or other negative balance sheet items that arose more than 7 or 10 years before the date of this statement
- Inquiries that have credit scores older than 2 years are considered hard credit inquiries.
How to Get Creditor Reporting Errors Fixed
While handling any of the above errors, if you discover that some of the entries are incorrect then you can challenge them with Experian, Equifax, and TransUnion through an online or offline method. This involves incorrect personal information as well as credit account information such as payment history, the amount due, and owing, or the type and status of accounts.
That includes information that the credit bureaus cannot independently verify as accurate, which by law they must investigate within 30 days and then delete. It is important to provide supporting documents such as an account statement or a court judgment in support of your allegations. If they still do not verify following this initial dispute procedure, then a written complaint and exhibit file can be filed to the Consumer Financial Protection Bureau (CFPB). At that time, the CFPB reaches out to the credit bureau on your behalf to conduct a further investigation.
Credit Rebuilding and How It Takes Place over Time
It is however possible to rebuild your credit score after a past mistake if you are willing to be patient and dedicated to the process. This means there is nowhere to go and no way of simply pushing a credit reset button to get a better credit score, contrary to what some credit repair companies may want you to believe. No matter how long it may take for the negative marks to cease from reporting, the best strategy is to work on constructing good credit.
Recommended ways to add positive credit include:
- Then there will be secured credit cards and personal installment loans to be paid every month once they are obtained.
- Provided they have proven to have a good record in paying their bills, they are allowed to be included as an authorized user on other people’s credit cards.
- The payment of all current expenses such as utility bills on or before the due date.
- Another approach that can be taken to manage credit reports is to allow older negative items to drop off the credit reports by not adding fresh problems.
- Cutting down on any credit applications in the course of rebuilding your credit rating
Normally, getting back “good credit scores” is possible within a few years since most of the credit bureaus are willing to reconsider your scores as you prove to them that you have reformed. Yet though one cannot block out the past right away, with perseverance it is possible to clear one’s credit record forever!
Call now for expert credit repair services: (888) 803-7889
Read More:
What is the fastest way to rebuild credit?
How to boost credit score immediately?
Is it illegal to pay for delete?
