How to Remove Bad Debt That Has Been Paid Off From Your Credit Report

Credit reports can contain many errors, including purchases you never made or the inclusion of bad debts you already paid. To correct your credit report that claims that you have not paid a bad debt, you must write a letter to the credit reporting agency and include supporting documents, if you have them. The agency then has 30 days to respond to your dispute.

Instructions

1

Review your credit report from all three major credit reporting agencies for errors. The agencies are Equifax, TransUnion and Experian. Highlight any bad debts that should not be there because you already paid them off. A free copy of your report from each bureau is available from Annualcreditreport.com annually (see Resources).

2

Write a letter to the agency that is incorrectly reporting this information. Include your full name, Social Security number and the name of the company with whom you are taking issue. Include details about when you paid off the debt. Attach copies of confirmation letters, canceled checks or credit card statements that back up your case.

3

Send the letter certified mail and ask for a receipt. Keep the receipt as proof that the agency got your letter. The agency must contact the company with whom you have a dispute. Once they settle the dispute, the agency must notify the other major reporting agencies of the correction.

4

Send the company one more letter asking them to send copies of the corrected report to anyone who has checked on your credit in the last six months. The agency is required by federal law to comply with this request, according to the Federal Trade Commission.