Having bad credit can bar you from buying a home or opening a credit card account. Poor credit can even cause some employers to decide not to hire you. There are some legal ways to erase bad credit. However, there are also limitations. Don't be taken in by scam artists who offer to "fix your credit" overnight regardless of the reasons for your poor credit standing.
Correct Errors
Credit problems that result from inaccurate information on a credit report can be erased. This does not apply to any correct information. The first step to removing or correcting false information is to get a current copy of your credit report. Under the Fair Credit Reporting Act, you are entitled to a free report once a year from each major credit bureau (Equifax, Experian, and TransUnion). Call Annual Credit Reports, which is the FTC-authorized provider, at (877) 322-8228 or order your reports online by going through the FTC website (ftc.gov/freereports).
If you identify items on your credit report, file a dispute with the credit bureau. By law the credit bureau must remove the information while they investigate and make corrections. According to the FTC you should notify both the credit bureau and the creditor in writing that you are initiating a dispute of an item. Include copies of any documents you have that support your position (don't send the originals). Once the information has been corrected request that the updated credit report be sent to any creditor who has received the erroneous information.
Negotiate with Creditors
Accurate information cannot legally be removed for a specific period . However, you may be able to make arrangements with a creditor to improve your position. For example, if you've had an obligation "charged off" as a bad debt, you may be able to get the creditor to amend the report to show the account paid in return for your clearing the debt.
Repair Credit
Ultimately, the only way to completely erase bad credit not due to errors is to improve your use of credit. Once you can bring all your credit accounts up to date and make arrangements to start paying off any defaulted obligations, your credit report will start to improve. Continue to pay bills on time. This is the most important thing you can do to erase bad credit. Concentrate on reducing your debt to a level you can manage comfortably and refrain from constantly applying for new credit or closing accounts. If you demonstrate consistently good credit use habits for a couple of years, you'll find most of the negative items on your credit record will start to disappear.
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