A credit report can read like a frightening obituary of a person’s financial history. The credit report may reveal outstanding debts and defaulted payments from past years. While the debt might be old, the problems the log of the debt remain current. In other words, a debt from five years ago could be making it difficult to acquire a new loan and decent interests rates today.
Dealing with old debt is not impossible provided the debtor takes logical and intelligent steps to fix things.
Request a Copy of the Report
Requesting a free copy of a credit report is possible. Anyone can order a copy of his or her credit report from the top reporting agencies once every calendar year. Trying to solve problems on a credit report is difficult when a complete picture of the situation is not revealed. Remembering old debts remains a dubious strategy. Persons who have gone through financial struggles, serious struggles, are not exactly going to find it easy to remember every troubling mark on a credit score.
Aged Debts Disappear
Time definitely works in the favor of someone who has negative marks on a credit report. The report only reflects information within a set time period. Negative information drops off after seven years although negative content related to bankruptcy lasts for 10 years.
What happens when the old debt has not dropped off like it is supposed to? A manual request to dispute and drop the negative content can be made. Take this as another reason why it is so important to request a copy of a credit report. Mistakes and errors may be visible on the report. Only by actually looking at the report can the right steps to fix things be taken.
Contacting the creditor might be the best way to repair your credit. If the creditor has reported a debt with the wrong date, then notifying the creditor might be worth the effort. Through a simple dispute letter, a debtor could lead a creditor to adjust an inaccurate record.
Pay the Debt
Even though a debt may be a few years old, the entity owed the obligation is not going to be closed to accepting payment. A deal might be worked out in which the negative information is removed upon receiving a full or partial payment. Debtors unsure about how to contact those whom money is owed could always work with a legitimate service to make an offer.
This does bring up another vital point. The only company worth working with is a legitimate one. Removing a legitimate debt obligation from a credit score without making any settlements or payments is not exactly possible. How can anyone dispute a debt that is legitimate? Well, the debt can be disputed but it won’t exactly be easily removed.
Do Not Delay
The longer negative information remains on a person’s credit score, the greater the hassles the content might cause. Those who feel they are capable of addressing the ghost of old debt should take steps right away to do so.