The Truth About Erasing Bad Credit

Tamsen Butler
Erase your bad credit at the major credit bureaus.
Erase your bad credit at the major credit bureaus.

Plenty of companies claim to know all about erasing bad credit, but oftentimes the only thing these companies do is take your money and temporarily have negative items removed from your report. Unless negative information on a credit report is in error, the only surefire way to get it off your report is to bring the accounts up to date and wait the time it takes for the information to fall off the report.

The Need for Good Credit

A bad credit report can make it nearly impossible to get approved for credit at an affordable rate. Generally, the worse the credit report of an applicant, the higher the interest rate the applicant will be charged for a credit product and the higher the rate of fees added onto the account. In some instances, a bad credit report will prohibit an applicant from getting approved for a credit product at any interest rate since many lenders aren't willing to accept the risk.

Credit products such as loans and credit cards aren't the only concern when it comes to a bad credit report. Other entities review credit reports and make decisions based on the information contained within.

  • Potential employers - especially with companies dealing with financial products - often request a credit report review before hiring a new employee.
  • Insurance companies may review a credit report before issuing an insurance policy. Obviously many people are quite interested in erasing bad credit reports. They do not want to hinder their chances of getting approved for financial products, but a real urgency can arise when applicants discover their bad credit has stopped them from getting a job they applied for or an apartment they wanted to move into.

No Quick Fix for Bad Credit

Negative information does eventually fall off credit reports, even if the account is never paid in full. This means that a delinquent account that appears on a credit report will remain on the report for at least seven years. Although this is a long time to have bad credit, the fact that the item will indeed someday disappear from the credit report is good news for many people.

What if you want to get the item removed from your credit report before it cycles off because of its age? The only way to do this - unless the bad credit items on your report are in error - is to get the reporting agency to stop reporting the item. For example, if the account wound up being purchased by a collection agency then it will be the collection agency reporting the negative information on the report. Consequently, the collection agency is the only one who can stop reporting the account as delinquent.

There is no magic fix to erasing bad credit reports. There is no letter you can write or law you can reference which will allow you to permanently erase the negative items off your credit report without paying the accounts or working out a deal with the creditor. Incidentally, keep in mind that even though you may pay off a delinquent account, the history of the account once being delinquent will remain on your credit report for seven years unless you can convince the creditor to remove it from your report.

Companies that Claim to Erase Bad Credit

Knowing that many consumers are incredibly frustrated with the status of their credit reports, many companies offer a service of erasing errors on bad credit reports. These companies charge a fee to protest negative items on your credit report. An inquiry into the validity of a negative item on a credit report will result in the item being removed from the credit report while it is investigated, but this is merely a temporary fix since the items go right back on the report once it is determined that they are legitimate.

Get Rid of Bad Credit the Right Way

You don't need to pay a company to protest negative items on your credit report, especially if the items are valid. To speed up an increase in your credit score, pay off your delinquent items and pay your existing debt on time, every time.

The Truth About Erasing Bad Credit