How to Remove Bad Credit History

Removing bad debt from your credit report can improve your credit score and make it easier for you to qualify for credit cards, auto loans and mortgages. Your options are limited, however. Some creditors might agree to delete bad credit information in exchange for you paying an old bill in full, a process called "pay for delete." Other than that, your options are to demand information be removed if it is inaccurate, or wait for it to become outdated. That usually takes seven years for most bad credit information and 10 years for bankruptcy.

Instructions

1

Get a free copy of your credit report from the Annual Credit Report website. The three nationwide credit bureaus operate the site to provide free credit reports as required by the Fair Credit Reporting Act. Follow the directions on the website to order by mail or telephone.

2

Review your report to find the bad credit history. Look for old debts you still owe, such as charge-offs and collection accounts. A charge-off is an account that was closed after you failed to make payments as agreed. A collection account is one that was charged-off and sold to a debt collector.

3

Contact the creditors or collectors of your bad debt. Offer to pay it in full in exchange for the bad credit history being removed from your report. They can direct the credit bureaus to remove the information after receiving your payment. However, pay-for-delete agreements are generally hard to come by because many creditors believe they compromise the reporting system.

4

Review your report to find bad credit history that is outdated. According to federal law, negative information that is outdated must be removed by the credit bureau once it has been notified. Charge-offs, collections and late payments all expire after seven years. Get the credit bureau's address off of its website, then write a letter challenging outdated information and insisting it be removed. Wait 30 days for a response. If one doesn't come, contact them again.

5

Search your report for any bad credit information that is incorrect. Again, have this information removed by sending a letter to the credit bureau. In your letter, state why the information is wrong.