How to Clean Up Paid Debts on Your Credit Report

Your credit score is the single most important element that businesses use to assess your trustworthiness. You need at least fair credit to get a credit card or a loan, and you need a great credit score to get even a decent interest rate. Paying off your existing debt is a great way to raise your score. Once you make the final payment on a debt, your credit report should be corrected automatically within about 60 days. If the debt still appears on your credit report more than 90 days after you have paid it, you need to contact your creditor.

Instructions

1

Call the company of the card or account you have paid off. Get past the automated system to speak to a live person.

2

Inform the representative on the phone that you have paid off your debt and you need the credit bureaus to be informed as soon as possible. If necessary, fax or email a copy of your account information that shows your debt has been paid in full.

3

Listen to the advice of the representative. He may be able to help you over the phone, or he may require you to make a request in writing that the company report your new credit standing immediately. Either way, get a letter from your creditor saying the business acknowledges that your debt has been paid.

4

Follow up with the creditor no later than one week after you have made the request. Check that they have reported your paid-off debt, and ask that they close any accounts you no longer want open.

5

Obtain a credit report to check that the company reported your debt as paid. You are entitled to one free credit report a year from all three credit bureaus through the Annual Credit Report website. If the debt still appears on the credit report, then call the company back and ask to speak to a manager who is authorized to help you resolve the issue.