What Is the Best Way to Get Rid of Delinquent Debt From My Credit?

Delinquent debt on a credit report will drop a credit score (also known as a FICO score) extremely fast. Delinquencies are weighed very heavily when the three main credit bureaus--TransUnion, Experian and Equifax--calculate credit scores. Removing delinquencies can be challenging. Time can also be a factor. However, with diligence and patience, you can clear up your credit.

Instructions

1

Obtain a current copy of your credit report from annualcreditreport.com. This is a site mandated by the U.S. government. It will allow you to pull three copies of your credit report--one from each of the credit bureaus. Review all delinquencies, charge-offs, judgments, liens and medical judgments. All of these are delinquent debts.

2

Corroborate any and all delinquent debts. This can be done with old account statements, bank statements, old credit reports, any correspondence with the company and paid-in-full letters. Make sure that any outstanding debt is in fact legitimate.

3

Pay off any legitimate, outstanding debt. If you have serious debt (like a large tax lien), you will need to restructure your budget, make cuts to things like entertainment expenses, and create more disposable income to use to pay down these debts.

4

Dispute any illegitimate debts on your credit report. This can be done by drafting a letter to the credit bureaus, specifically pointing to the error, corroborating your claim with photocopied documents, and sending it to all three credit bureaus. These agencies must respond to all inquiries within 30 days and correct errors within 90 days.

5

Wait for paid debts to fall off your credit. Most debts--even paid ones--remain on your report for at least seven years. You can request that one or many be removed, but this is at the discretion of the credit bureau.