Is it Possible to Erase Bad Credit?

No one can automatically erase bad credit report. There is no super computer program that can delete your credit history so you can start anew. However, there are ways to repair your bad credit history. There are a few ways to go about repairing your bad credit. First of all, is your credit history that bad? If you are in the 500 and below range, then you better start considering some major over haul on your score. Repairing your credit will require that you have knowledge, patience, and diligence to go through with making sure that your credit score increases in the positive direction. Repairing your bad credit history will benefit you in the future as it will be much easier to obtain a home loan.  However, there are home loans for people with bad credit that are available. 

The first task you will need to do is to stop using your cards and increasing your debt. Do NOT close any credit accounts and do NOT spend anymore on your cards. Cut up your cards and throw them away! If you have the income, then you need to start budgeting and creating a plan to save money towards your credit card payments. Try to pay off more than the minimum payments and focus your payments toward the higher interest paying debts. If possible, try to consolidate your bad credit loans into an easier to pay monthly payment. If this is not an option, then just stick to a budget and start paying off those cards. If you feel like you do not have the discipline and will-power to stick to a budget, then go to a credit counselor as power in numbers will help you. Your credit counselor can give you advice and guidance and will send you in the right direction. There is not magic bullet for your debt to be erased (unless you file for bankruptcy, but other problems are associated with this). Next, use a secured or bad credit history credit card to make small purchases that you can pay off immediately. This will help you rebuild your credit history while you are paying off your debt. If you think that you will not be able to obtain a credit card with your bad credit, don’t worry, some lenders focus on people with bad credit and will allow you to borrow from them. Remember, you HAVE to pay off these cards on time because these credit cards will carry MASSIVE amounts of interest. Besides, these cards usually have a very low limit (around $500) and should only be used to build up credit.

The next thing you can do is actually repair your credit score. This will require that you have to dispute the negative comments on your credit report. It is up to you to search for all the errors reported on your report and to dispute this information. Make sure that all of the information on your credit report is accurate as some credit reporting agency does not reflect what actually happened to your credit. If by chance the reporting agency did make an error on your report, you have the right to send a corrected report to your creditors for the last six months of credit history. During the time when you’re building up your credit history, make sure to view your credit report at least once a month to see whether your situation has become any better. The other purpose of this is to see where any other negative marks are against you. If there are any other negative marks, then dispute them right away if you think they are deemed to be incorrect. Perhaps you should consider using a credit protection service when trying to “erase” bad credit as well so that nothing else can damage your credit during your “repair stage”.