How to remove closed accounts from my report?

[Rex]

How to remove closed accounts from my report?

I’m trying to fix my credit report and have paid off quite a few derogatory accounts, but they still appear on my report. My credit score therefore hasn’t increase reflecting that I’m trying to improve my score.

How do I get them off my report? Should I dispute them as being paid?

Thank you

[Tracy Winters]

You CANNOT take them off

There are three big misconceptions among people:

• Paid accounts fall of your report
• Paying off old debts raise your score
• Disputing items removes them from your report

A credit report is a reflection of your credit history. You had a few derogatory accounts in the past. That fact is not going to change, and therefore the accounts will remain on your report for 7.5 years.

Their status will update to “Paid” or “Settled”, but they won’t go off. Disputing them won’t do any good either. Disputing an item is like telling the credit bureaus “This item is doesn’t belong to me”. But it does, and this why it won’t go away.

Your credit score is just a reflection of your credit report, and so it too will not go up because you’ve paid all or part of your delinquent accounts. Your score is impacted because you’ve had delinquent accounts in the past.

With time the effect of these derogatory accounts is reduced. Assuming that you create a steady stream of timely payments your score will recover.

So why pay off these old accounts if it doesn’t help your score?
For three good reasons:

1. Your credit status is much more than just your credit score. Lenders do actually go over your report when they review your applications. A “Paid” or “Settled” account looks much better than a charge-off or default account. Mortgage companies, for example will not even consider your application with un-resolved delinquent account, regardless of your score.
2. Old debt are usually sold to collection companies that tend to file a law suit right before the statue of limitation expires. You’ll end up with a judgment or lien against you. That judgment/lien will also appear on your credit report, further damaging it. Not to mention that you will end up paying.
3. There is of course the moral aspect of paying your debts.

My advice – keep paying these debts. Keep building good payment history and your score & credit will rebound.

Good luck.

[Author]

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