Removal of Outdated Negative Credit Information

Negative credit information is unavoidable when you run into financial problems. Late payments, repossessions, charge-offs and similar entries pop up on your credit reports and act as a barrier to new credit applications. FICO, the dominant credit score company, states that they reduce your score too. Their effect does not last forever, according to the Federal Trade Commission (FTC), because they only show up for a limited time. You can force the credit bureaus to remove them after the designated time if they don't do so automatically.

Instructions

1

Ask for your credit report from the three credit bureaus through Annual Credit Report.com, the official website designated with providing the reports. TransUnion, Experian and Equifax are independent credit reporting agencies that maintain their own databases. Any or all of the agencies might be reporting outdated negative accounts in your records. The FTC explains that each one must give you a free report annually if you place your order through the federally-approved site.

2

Find the outdated negative items on all three of your credit reports. Open accounts in good standing can show up forever, but the FTC explains that there are limits on the reporting time for most negative data. Credit cards, loans and other accounts must be removed from the records seven years from the time they became delinquent, while bankruptcies should be erased in 10 years.

3

Write individual letters to the credit bureaus asking them to erase the outdated negative information that still shows up on each report. Explain that the reporting period is over and state that you want the entries removed and would like an updated credit report copy. The FTC explains that corrected reports are free, even if you have already received your no-cost annual reports. This gives you the opportunity to make sure the outdated data is gone.

4

Mail your letters through the post office and request a delivery receipt, the FTC recommends. Your removal demand is considered to be a credit report dispute. The bureaus get 30 days to handle it under the Fair Credit Reporting Act, starting when your letter arrives.

5

Read through the credit bureau responses and compare them to your new credit report copies to make sure the outdated negative information is gone. The entries should be completely gone so they are no longer visible to lenders and have no effect on credit score calculations.