There has been a lot of focus over the past few years about your credit score and how it can keep you from getting that new car, a house or even a job. As many people have learned, their credit score has taken on a new dimension in their lives as lenders, as well as employers, put a lot of stock in your score and how it reflects on you as an individual.
Unfortunately, not only legitimate businesses have taken your credit score into account, so have those with less a stake in your well-being than a desire to separate you from your money. There are many offers on and off the internet that offer you the chance to “wipe out your debt” or “clean up your credit” report, making you eligible for lower interest loans and the many other benefits that accompany a good credit rating.
While these promises may sound good, chances are that 1) these companies can’t do anything that you can’t do on your own and 2) if the items on your credit report are accurate, they will still be there once your money has been spent. Under the laws governing credit reporting agencies, any legal report will stay on the record for the legally allowed period of time.
Here’s how it works: A creditor sends a report to the agency, or agencies, with information about your payment history, or lack thereof. The agency places this information on your credit history affecting your overall score, good or bad, and it will stay there for a minimum of seven years and, in some cases, up to 10 years. If you can prove to the credit reporting agency the information is not accurate, it will be removed. If you can’t prove it is wrong, it will stay there.
Companies making the promise to clean up your report will only have access to your credit report, by your permission, and they will attempt to remove information that should have been removed in the first place either by you providing proof it’s wrong, or it is old information that should have been removed in the first place.
Any information that is accurate will remain on your report and odds are, your score will not change. Many states have statutes of limitations during which a creditor can attempt to recoup money they may be owed. Credit agencies do not automatically delete bad debt information following the same statute of limitation and the information may remain on your report longer than the statute of limitation.
You can request a copy of credit report from the three credit reporting agencies, experien, TransUnion and TRW in writing. You can then look at the information included in the report and file a challenge to the information. When you send in your challenge you will have to prove the information is in error and, if you can, it will be removed. If not, it will remain there until the time elapses for it to be taken off.
There are only two sure ways of cleaning up your credit report. First, pay bills on time. Secondly, annually review your credit report for any erroneous or outdated information and follow up on any discrepancies you find. It may take a little time and effort on your part but you do not have to pay a third-party to fix something you can remedy on your own.
