May 28th, 2013 6:14 PM by Scott Bray
I heard from a client the other day asking how they could remove some of the bad credit that was reporting on their credit report.
Are there ways to remove bad marks on your credit report?
Most of the time you are going to be out of luck if you pay a collector and then expect them to remove the account off your credit report. Credit-reporting agencies, such as Experian, Equifax and Trans Union dislike creditors doing this in your favor. This doesn’t stop you from trying but it doesn’t work. It’s all about fairness in credit reporting. If you were late you have to have that be reported that way.
Consumers, of course, need to steer clear of costly gimmicks. The Federal Trade Commission late last month took action involving a credit repair company titled Credit Solutions. The FTC says warning signs of a scam from credit repair companies include: A guarantee to erase bad credit, claims that you can create a credit identity, and requiring money upfront to repair your credit.
If you owe the debt, like a late payment, the best thing to do is figure out a plan to pay it back. Typically, most accurate items, including late payments, can remain on a credit report for seven years and bankruptcy information can remain for 10 years.
What consumers don't understand is that some information — such as late payments — can gradually take on less importance a couple of years after an event even if it's still listed on a credit report.
On our Next Report we will explain how you can build up your credit stronger!