5 Sure Ways to Remove Old Debt from Credit Report

debtRemove Old Debt from Credit Report

Having bad credit or blemishes on your credit report can hamper your financial well being. However, the good news is that bad credit does not have to be permanent.

One way of showing financial reliability to your future creditor or employer is by having your old debts removed from the report.  

If you haven’t been paying your debt, the creditor might forward your account to a debt collector. The debt collector can list your account negatively with the credit bureau. The negative listing can stay for around 7 years and can hurt your credit score.

Here are 5 ways to have old debts removed from your credit report:

Contact the Collection Agency and Have them Validate the Debt

The Consumer Financial Protection Bureau (CFPB) requires that collection agencies validate debts within 30 days of request.

This will allow you to check if the claims made by the collection agency are accurate. If you think that there are discrepancies, you can dispute it with the credit bureau.

Opt for ‘Pay for Delete’

Pay for Delete

If your debt does not get removed by dispute, you can opt for ‘pay for delete’. This is when you negotiate with your debt collector to remove debt if you pay a certain amount. Make sure that you have evidence of all of this correspondence with you.

Sometimes, the credit bureaus might not agree with this type of arrangement. Make sure you have checked with them.

Try for Goodwill Deletion

There are very little chances of a goodwill deletion request to get approved, but it’s definitely worth trying.

It can work with accounts that have already been cleared by you. In the letter of request, you clearly point out the reasons for not being able to pay before and that you have paid debts now. The collection agency might decide to delete your debt.

Wait Till the Collectors Have Sold

It is very common for collection accounts to change hands in around 6 months. Your debts can be assigned to a new collection agency and it could be the right time to dispute.

Wait for Seven Years and Then Dispute

Finally, if all else fails, you always have the chance of disputing again after 7 years. Your past due accounts can only remain with your credit report for a period of 7 years.

If the 7-year time period has passed, you can dispute and get the debt deleted.

With a team of financial gurus, we at KeyPoint Credit Services, LLC. help people clear their credit reports. Our team of credit repair specialists ensures that you are on your path to financial well being.