(1) You’re wanting to apply for a bad credit auto loan. Besides your credit score, what are the key factors that a lender considers on your report?

(a) The types of credit cards you’ve opened and the number of inquiries.

(b) The amount of time you’ve had a credit history and the number of accounts you’ve opened.

(c) How many open charges you have and the amount of your debt load.

(d) Your payment history and how much you owe.

Answer: (d) Although the other aforementioned factors play a part in the decision-making process for a loan, your payment history and the amount you owe have a significant influence on your score as well as whether or not you’ll qualify for a loan.

(2) Which of the following items can be erased from a credit report?

(a) Tax liens

(b) Garnishments

(c) Inquiries

(d) All of the above

Answer: (d) All of the above. In addition, you can also remove foreclosures, bankruptcies, civil claims collections, late pays, repossessions, and charge-offs.

(3) Is it true that you can erase bad credit legally from your report by filing bankruptcy?

(a) Yes. But only if you file Chapter 13 Bankruptcy.

(b) Yes. You can erase bad credit fast by filing either Chapter 7 Banktruptcy or Chapter 13 bankruptcy.

(c) Yes. But first you must file a “Statement of Affirmation” before this can be done.

(d) No. Bankruptcy will not clear the debts from you file. In fact, the bankruptcy will be added to your Credit Report further indicating to a lender of your inability to pay. Therefore, it’s important to secure the services of a mediation company such as a Credit Repair service if you want to erase bad credit of any kind from your credit report.

(4) If someone wants to go through a Consumer Credit Counseling Service in order to improve their score, how long will it take for them to see an improvement with respect to their overall credit report?

(a) Consumer Credit Counseling Services can give you the assistance to pay down your debts in a matter of 60 to 90 days.

(b) A Consumer Credit Counseling Service can assist you in management of your debts so you can remove most items in 30 days and see an improvement in your score.

(c) Simply by signing up with a Consumer Credit Counseling Service will automatically boost your credit score.

(d) Often times, if it’s shown that you have gone through a Consumer Credit Counseling Service for help with debt management and credit counseling, this will reflect negatively on your score. It’s better to learn how to erase bad credit before taking this measure.

Answer: (d) Unfortunately, many lenders will look at the fact that you had to obtain the help of a Consumer Credit Counseling Service as a negative. This is also viewed as such on your credit report.

(5) What items below can’t be erased from a credit report?

(a) Incorrect personal information

(b) Medical bills.

(c) Student loans.

(d) All of the above.

Answer: (c) If you don’t pay off your student loan, it’s normally a difficult item to erase. This, specifically, applies to  government-backed student loans.  Only by going back to school or through a loss of  income can you lessen the burden of paying such a loan back. A private student loan can be forgiven if you file bankruptcy and have the bankruptcy removed from your report.

How’d you fare? There’s no easy solution to erasing bad credit nor can you erase bad credit for free. There’s always some kind of price you have to pay. However, if you’re diligent, you can improve your report and, as a result, your future financial security.

How long do negative items have to stay on your credit report before they can be removed?

Negative items such as late payments, non-pays, or charge-offs typically do not fall off your credit report for seven years. However, it is possible to remove these items before seven years’ time.

With regards to erasing bad credit, can credit repair companies even erase such negative items as bankruptcy?

Yes, even bankruptcies can be removed along with delinquencies and judgments.

Can you resolve a dispute with a creditor yourself and have a negative item removed from your report?

Yes. You can erase bad credit legally by contacting creditors yourself and having the negative information removed from your report. Better yet, if you do resolve a dispute with a creditor, you can have them contact the Credit Bureau and have an item erased.

With a credit repair company, can you erase bad credit fast?

Situations vary but normally it takes from a minimum of thirty days to sixty days for you to see progress along these lines even when you use a credit repair company. Typically, if you do it yourself, it may take a longer amount of time.

On your credit report, what is an inquiry?

An inquiry listed on a credit report refers to any potential lender or creditor who looks at your credit report information in order to to consider you for a loan or credit. Too many inquiries can drive down your credit score. So it’s a good idea to keep this type of activity to minimum when it comes to your credit score.

On your credit report, what does it mean to have a credit account reinstated?

It means that a previously closed account is now available for use again.

When placing a dispute, how many days does a creditor have in order to respond to a credit bureau’s inquiries with regards to your allegations?

The creditor has 14 business days in which to respond. If no response is made in that window of time, then the disputed report must be expunged and an updated file will be mailed to you for your confirmation.

On a credit report, what is the definition of a charge-off?

A charge-off on a credit report is a credit amount that could not be collected by a creditor.

What are the two acts that protect your rights with respect to erasing bad credit information from your file?

The two acts instituted to protect your rights in this regard are the Fair Credit Reporting Act (FCRA) and the Fair Debts Collection Practices Act (FDCPA).

What does the Fair Credit Reporting Act say with regards to the information on your credit report?

The Fair Credit Reporting Act (FCRA) stipulates that the information on your credit report must be accurate, timely and verifiable in order for such information to stay on your report.

What is the key area that affects your credit score on a credit report?

Your payment history is the primary factor that affects your score. Also the amount of your debt has a significant influence.

The FAQs above should assist you if you’re wondering how to erase bad credit from your report. There are a number of credit repair companies as well who can help with erasing bad credit. Research the Internet and you can find answers to your questions and receive further help in this area for you and your family.

Erasing Misconceptions

Legally, we’re told that bad credit items normally stay on one’s credit report for seven or ten years depending on the item. However, this isn’t true. The law only stipulates that accurate credit may stay on your report for a period of seven years. This doesn’t mean that erasing bad credit before 7 years isn’t an option.

Paid Charge-offs

However, one must remember even if they pay off an older account, it may be shown as a “paid charge-off” meaning this item will remain on your report for another seven years. So, paying off your older credit card debt can actually hurt you with respect to how it’s conveyed on your report.

Erasing a Previous Item

You can erase bad credit fast, even listings such as judgments and bankruptcy if you hire the right company to handle it for you. Part of understanding how to erase bad credit is noting what the Fair Credit Reporting Act says about erasing bad credit. According to the Act, if a negative item is not verified within a 30-day span of time, the item should be deleted permanently from the report. If you see an item that was previously removed appear on your report, you can have it removed immediately by alerting the credit bureau in this regard.

Declaring Bankruptcy does not Clear your Report of Negative Items

Some people believe if they declare bankruptcy that by doing so they can erase bad credit legally; however, this isn’t the case. You still have to seek the aid of a professional to erase bad credit from the report. It isn’t surprising then that the Federal Trade Commission (FTC) gets the majority of their complaints issued against credit bureaus over all other kinds of businesses.

CCCS

What’s more if you’ve opted to go through a Consumer Credit Counseling Service, you do nothing to help your bad credit situation either as many times creditors or lenders, upon hearing you went through such an organization with respect to debt mediation, will treat you no better than if you’d actually declared bankruptcy. As stated, there is no hard and fast rule in the law that any type of credit must be reported at all; therefore disputed items can definitely be erased.

To find a company to erase bad credit for free will not likely happen soon. Nonetheless, paying the cost for erasing bad credit is a necessary expenditure to make amends for your financial history.