What Can Credit Repair Companies Actually Remove from Your Credit Report?
What Can Credit Repair Companies Actually Remove from Your Credit Report?
During my time doing credit repair I've seen a lot of misconceptions about what credit repair companies can and cannot do. Today, we're going to dive into some specific types of negative items on credit reports and discuss whether credit repair companies can remove them. Remember, understanding these limitations is crucial for setting realistic expectations about credit repair services.
Can Credit Repair Remove Evictions?
Strictly speaking, evictions themselves do not appear on credit reports. However, the financial consequences of an eviction might. Here's what you need to know:
Eviction judgments used to appear on credit reports but are no longer included as of 2017.
Unpaid rent or damages related to an eviction may appear as collections accounts.
Credit repair companies can help remove inaccurate collection accounts related to evictions but cannot remove accurate information.
Can Credit Repair Remove Charge-Offs?
Charge-offs are serious negative items on your credit report. Here's the deal with charge-offs and credit repair:
Credit repair companies cannot remove accurate charge-offs.
If a charge-off is reported inaccurately (wrong date, amount, or account details), a credit repair company can dispute this information.
In some cases, they might negotiate with the creditor for a "pay for delete" agreement, but success is not guaranteed and some consider this practice controversial.
Can Credit Repair Companies Remove Collections?
Collections accounts are another serious negative item. Here's what credit repair companies can do:
They can't remove accurate, timely reported collections.
They can dispute inaccurate collection accounts or those that don't comply with credit reporting laws.
In some cases, they might negotiate with collection agencies to have the account removed in exchange for payment, but this is not always successful.
Can Credit Repair Companies Remove Late Payments?
Late payments are a common issue that many hope to address through credit repair. Here's the reality:
Accurate late payments cannot be removed by credit repair companies.
If a late payment is incorrectly reported, a credit repair company can dispute it.
Some credit repair companies might try to negotiate "goodwill deletions" with creditors for one-time late payments, but this is a courtesy, not a right.
What Else Can Credit Repair Companies Remove?
Credit repair companies can potentially help with removing or correcting several other items:
Outdated information: Negative items that should have aged off your report (typically after 7 years, or 10 for certain bankruptcies).
Duplicate accounts: Sometimes, the same account might be listed twice on your report.
Mixed file errors: When information from someone with a similar name or Social Security number appears on your report.
Identity theft-related items: Accounts or inquiries resulting from identity theft.
Incorrect personal information: Such as wrong addresses, misspelled names, or incorrect employment information.
The Bottom Line
It's crucial to understand that credit repair companies are not magic wands that can make all negative items disappear. They are most effective at removing inaccurate or outdated information. Here are some key takeaways:
Credit repair companies cannot legally remove accurate negative information, no matter how damaging it is to your credit score.
The primary value of credit repair companies lies in their expertise in identifying errors and navigating the dispute process.
For many issues, such as legitimate late payments or charge-offs, the most effective approach is often to wait for them to age off your report while building positive credit history.
Before engaging a credit repair company, consider reviewing your credit reports yourself and disputing any errors directly with the credit bureaus.
Remember, improving your credit is often a gradual process that involves not just correcting errors, but also building positive credit habits over time. While credit repair companies can be helpful in certain situations, they're not a substitute for responsible financial management.
