How to Pay Off a Debt to Be Removed From a Credit Report

A debt won't be removed from your credit report before it is actually paid off. To remove a balance from your credit report, you must first take steps to satisfy it. Each creditor has a specific payoff procedure. Determine this procedure prior to paying off the loan. Once the loan is paid off, it takes about 30 days for your credit report to be updated. If, after 30 days, the obligation is still shown as open, you have the right to contact the credit bureau and open a dispute.

Instructions

1

Contact the creditor and request a payoff statement. The actual payoff can include interest, collection and administrative charges in addition to the principal balance. Paying off only the principal will not satisfy the debt.

2

Submit the payment to the creditor. Common options are via check and online bank transfer. Ensure that you receive a receipt or payment confirmation. Retain this document for your records.

3

Obtain a copy of your credit report after 30 days. Accomplish this by visiting the Federal Trade Commission's Annual Credit Report web site (annualcreditreport.com) or by calling 877-322-8228.

4

Review the credit report to ensure the debt has been listed as paid.

5

Write a letter disputing the debt if it still shows as an open item on the credit report. Send the letter along with the proof of payment you received upon satisfaction of the debt.