Saturday, June 27th, 2009

How can you fix bad credit, can you wait it out until it disappears off your credit report?

fixing bad credit
Kristy R asked:


I’ve heard bad stuff goes off your credit report after 7 years, so can you wait it out and have decent credit again after 7 years? Anyone know how that works or what to do to fix it?

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

This entry was posted on Saturday, June 27th, 2009 at 12:00 am and is filed under How To Improve Your Credit Score. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

7 Responses to “How can you fix bad credit, can you wait it out until it disappears off your credit report?”

scorpiomaj27 Says:
June 29th, 2009 at 2:59 am

I thought the 7 year rule was for bankruptcy, it takes 7 years for that note on your credit to disappear. You can actually repair bad credit in a matter of months if you have some form of credit that you can keep up with. If you have 1 credit card and a terrible rating, that’s all you need – pay the card down to $20 and charge a new $20 each month and pay $20 each month. The problem is if you close all your cards, then you have no way to rebuild.

Diaboyos Says:
June 29th, 2009 at 4:00 pm

I was lucky enough to have a friend on the inside that removed it for me.

Kristy Says:
July 2nd, 2009 at 7:16 am

Generally it’s 7 years. It will effect your credit score, especially if it is a complete write off.
Ways to improve your score: First pay down your debts, especially unsecured debt (like credit cards). If a reporting agency sees that all your credit cards are near their max, it will effect your credit score. Second, make sure you make payments ON TIME. Having a long time arrangement with a creditor without late payments will increase your score.

ANother way is, if the debt is disputable, dispute it. Disputable items are taken off until the issue is resolved.

DaMan Says:
July 4th, 2009 at 1:27 am

Yes, I have done it.

The best way to fix bad credit is:

1) Commit to buying things you need (not thing you want, or things you THINK you might need later) and sticking to this commitment.
a) You might need a car, but you don’t need a Mustang — and you sure as hell don’t need a 2006 vehicle (with bad credit) when there is somewhere out there who has paid most of the depreciation on what was once a “brand new” car.

2) Wait out the 7 year time horizon by paying all bills on time WITHOUT EXCEPTION and when you have constructive knowledge of circumstances that prevent you from paying your obligations — call your creditors immediately to arrange a work-out agreement.

3) Develop a reasonable budget to control your flow of income and expense and stick to the budget religiously. Actually, budgets can tremendously ease your daily financial decisions by letting you see why you can’t loan family money or buy your child an Xbox. Nothing from nothing — leaves nothing!

and finally. . .

Please realize that if you have debts that you have no intention of paying, but would like to “wait out” — you must realize that this sword cuts both ways.

You have rights and so do the creditors!

Your creditors could conceivably file a civil suit against you for the amount you owe before the statute of limitations expires on the debt you owe.

So, in accordance with Section 605 of the Fair Credit Reporting Act, the old debt will drop from your credit report 7 years from when it was first reported delinquent.

HOWEVER, the court judgment, should the creditor(s) prevail, will remain on your credit report for SEVEN years as well.

So, if you duck the debt, you face the likelihood that a judgment could be obtained against you and you will have to wait another 7 years to get THAT JUDGMENT removed from your credit report!

Lovely world, isn’t it?

lani u Says:
July 5th, 2009 at 12:45 am

NO! it does not disappears although it will be marked as “charge off” but will always show in your credit report. Charge off means…you could not make all payment therefore debtors close your account. this will never be remove from your credit report, the only way you can fix your credit is to restablish it by applying for small amount of loans and paying them back with no lates..its called “paid satisfaction”. each time you apply for any credit cards and you pay each one on time with no lates it will show a mark that looks like this “11111111111″ these marks means you have paid on timely manner and this will overide your previous charge offs…these are called “your trade lines” you need atleast 4 goo standing tradelines to get your fico score back up. Lenders will not hold you irrisponsible if they see that your stablishing good standing on your current debtors.

jititi j Says:
July 8th, 2009 at 12:53 am

It will take 7 years to disappear from your cr report

How to Clean Up Credit Report

Studly Says:
July 11th, 2009 at 2:32 am

DaMan’s answer is absolutely correct.

The only thing I could add is to dispute all of the negative items on your credit history. The Credit Reporting Agency is required to investigate all disputes. If the creditor fails to respond to a dispute investigation the item is deleted automatically. Other then that, it stays on your history.

But by doing the other things that DaMan mentions, your credit will start showing improvements fairly soon. Not great, but it will help.

Leave a Reply

You must be logged in to post a comment.