How to Clear a Credit Problem

A credit problem that needs to be cleared is probably a negative entry on your credit report. The negative item may be making it difficult for you to get new credit, and could be the one thing holding you back from getting a new house or car. The best option for resolving your credit problem is to simply pay the debt, but laws governing what can be included on your credit report may also provide a solution.

Instructions

1

Get a copy of your credit report. It's available for free at the website Annual Credit Report. TransUnion, Experian and Equifax--the three credit bureaus--created the website to offer free reports to the public as required by federal law.

2

Find the credit problem on your report. It could be a credit card account that was closed by the bank and listed on your credit report as charged-off. Or it could be an old account that was sold to a debt collector.

3

Note the date of the last activity on the account, such as a payment. By law, negative information such as charge-offs and collection accounts can remain on your report for only seven years. If more than seven years has passed, you can have the negative information removed simply by writing the credit bureau. Write to the address on your credit report. The information will be removed within about 30 days.

4

Contact the creditor to resolve the account if the problem has existed for fewer than seven years. Offer to make full payment in exchange for the negative entry being erased from your report--a process called "pay for delete." Your creditor can direct the credit bureau to do this, but be sure to get an agreement in writing before paying off the account.