One question that pops up every once in a while is " How long does it take to have bad credit removed from my credit report?"
Just because there is an adverse account still showing up on your credit history does not necessarily mean it affects your credit scores. Even after your have resolved these bad accounts they may still be showing up on your credit history for a period of time.
I am not professing to be a credit repair specialist. I am merely relating my experience as a loan officer in dealing with underwriters and credit issues with homeowners trying to be approved for a mortgage.
First you must understand that, other than bankruptcy's or foreclsoures, FIRST you have to pay off or resolve the issue before it will ever be removed.
Most consumer debts such as credit cards, auto repo's, and phone bills (which is one we see a lot) take 7 years to be removed. Over time most of these will appear as "chargeoff's" on your credit report.
I hate it when I see several small accounts like phone bills or small balances on credit cards in default because it can seriously affect credit scores. These debts will eventually be placed with collection agencies.
Bankruptcy's and foreclosures typically take 10 years. Depending on the type of bankruptcy it may or may not have to be paid before it will be removed. When dealing with bankruptcys it's best to consult an attorney who specializes in that field.
It's possible that judgements and tax liens can stay forever. If you have one of these you will have to have it resolved which usually means paying it.
Make you sure it is recorded at your local court house once you do resolve it so that it will show up as "satisfied" on your credit report.
If you find there are items on your credit report that are incorrect you will need to dispute these items.
Here are links to the three credit reporting agencies:
Transunion: www.annualcreditreport.transunion.com/tu/dispute/order.jsp?package=DisputeDisclosure
Experian: https://www.experian.com/consumer/cac/InvalidateSession.do?code=CDI
Equifax: http://www.equifax.com/online-credit-dispute/
First you must understand that, other than bankruptcy's or foreclsoures, FIRST you have to pay off or resolve the issue before it will ever be removed.
Most consumer debts such as credit cards, auto repo's, and phone bills (which is one we see a lot) take 7 years to be removed. Over time most of these will appear as "chargeoff's" on your credit report.
I hate it when I see several small accounts like phone bills or small balances on credit cards in default because it can seriously affect credit scores. These debts will eventually be placed with collection agencies.
Bankruptcy's and foreclosures typically take 10 years. Depending on the type of bankruptcy it may or may not have to be paid before it will be removed. When dealing with bankruptcys it's best to consult an attorney who specializes in that field.
It's possible that judgements and tax liens can stay forever. If you have one of these you will have to have it resolved which usually means paying it.
Make you sure it is recorded at your local court house once you do resolve it so that it will show up as "satisfied" on your credit report.
If you find there are items on your credit report that are incorrect you will need to dispute these items.
Here are links to the three credit reporting agencies:
Transunion: www.annualcreditreport.transunion.com/tu/dispute/order.jsp?package=DisputeDisclosure
Experian: https://www.experian.com/consumer/cac/InvalidateSession.do?code=CDI
Equifax: http://www.equifax.com/online-credit-dispute/
In another post I will address how to improve your credit scores.
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