Credit Lesson #3, Remove Expired Items
Remove Expired Items
After you have identified your negative credit accounts, determine the age of each account.
After a certain period of time, the negative items on your credit report will expire. Upon expiration, these items should be deleted. If you have a derogatory account that has expired but still shows up on your report, just contact the credit bureau that is reporting the delinquency and ask them to have it removed. This is an easy first step in cleaning up your credit score.
Here are the expiration guidelines: Late Payments 30 to 180 day late payments should be deleted after 7 years.
Charge-off Accounts Should be deleted after 7 years
Collection Accounts Accounts sent to collections should be deleted 7 years from the date of the original missed payment.
The account will be marked as “paid collection” on your report when you pay the full balance.
If you settle with the collection agency for a reduced amount they will report the account as “paid for less than the total due” or “settled”.
It is best to have the collection agency report the account as “Paid in full” or have the account deleted all together. You don’t want any of your accounts to say “paid collection” or “settled”.
Closed Accounts If the account had delinquencies, those marks should be deleted 7 years from the date they were reported.
Bankruptcy Bankruptcies remain on your credit report for 10 years after the filing date. When you file for bankruptcy, all the accounts included in the bankruptcy should be marked as “Included in BK”. These individual accounts that were part of your bankruptcy should be deleted after 7 years.
Judgments Most judgments, including small claims, civil and child support, should be deleted after 7 years from the filing date.
Tax Liens City, county, state and federal tax liens are especially harmful because they can remain on your credit report indefinitely.
Again, if you have any negative accounts that meet these expiration guidelines write or email the credit bureau reporting the item and ask them to have it deleted. This is an easy first step that can improve your credit rating quickly.
Next Lesson: How To Write A Killer Dispute Letter
-Dave
