How to Pay Off Old Debt on a Credit Report

When applying for any type of loan, your credit report is pulled. Listed on your credit report is every loan that you have had in the past in addition to any collections, liens, or judgments that have been filed against you. If the lines of credit are still open, they will appear on your report. If the lines of credit have been closed, they usually removed from your credit report after seven years. If there is negative debt on your credit bureau, it needs to be removed.

Instructions

1

Check your credit on all three bureaus: Experian, EquiFax and TransUnion. Visit any a free credit reporting site, such as FreeCreditReport.com, and order a tri-merge report. Enter your full legal name, social security number, birth date and credit card information to receive a full report. Take note of any errors and use the online credit reporting tool to report any errors to the agency.

2

Take note of any unpaid debts, liens, judgments, or collections on your report. List them in order of smallest to largest.

3

Contact each debt holder listed on the credit bureau to either create a payment plan or to pay the debt in full. Start with the smallest debt and continue paying until each debt is paid in full. Collect a receipt or letter of full payment from each lender.

4

Pull your credit report 45 to 60 days after your last debt is paid in full. Make sure that all debts are marked as paid in full. If not, report them directly to the credit bureau by showing proof of payment.