Cleaning up my credit

[Inigo_Montoya]

I'm trying to clean up my credit report and the only issue I'm having is with a non-tax debt of $10,500 with the Department of Treasury. I have this in a payment plan over the course of 24 months, but they refuse to take it out of collections/delinquent status until it is paid in full. Is there anything I can to dispute this with the credit bureaus to have it reflected as being in a payment plan? Everything in my credit report has either been paid off, is on a payment plan, or is being disputed. This is the only issue I haven't been able to resolve through talking with the company on the report. Thank you.

[cardtrick]

Unfortunately, making payments on written off debt will not do anything to improve your credit score. There is a very good forum that has tons of great info and great people willing to help. I think the mods here are very sensitive to outside links, so I won't post any links. Google is your friend. Here's a hint. CB.

[hamchan]

Well, having a zero balance on a collections account is always better than having a negative balance, but it's not a huge difference.

[Jerry91]

I don't think you will be able to do anything in this regard. As far as I know, any negative item mentioned in your credit report will remain in it for around 7 years. Prior to that it will be difficult for you to remove the negative item from your credit report.

[dczech09]

Google is your friend. Here's a hint. CB.

Google can be hit or miss when it comes to information about your credit report and how to clean it up. There are A LOT of con-artists out there who sell "kits" and books on how to clean up your credit and increase your credit score "quick and easy."

The problem is that these resources teach you to do things like lie to the credit bureau, which is fraud. So don't do it. Your world will be rocked if you get caught, and not in a good way. One of the big names out there is Kevin Trudeau and his "Debt Myths They Don't Want You to Know About." Kevin Trudeau also went to prison for embezzlement, so I don't think he is a real credible source

I am sorry, but you're not going to like the "real" solution. The only true-fire way to clean your credit and improve your score is time. It takes time and a good track-record of doing the right things like making payments on time, avoiding default, and keeping your credit utilization low.

What is done is done. The bad remark is on your credit report for a reason and will remain there as long as it is factual. The best that can be done is for it to state that it has been paid off when that time comes. However, it will still remain on your report for up to 7 years and will have an impact on your score.

I hope this helps! Do yourself a favor and exercise a little common sense when Googling things about credit. If it sounds too good to be true, it probably is.

[hamchan]

Another thing to realize is that while negative remarks stay on your credit report for at least 7 years, the older the neg is the less impact it has on your score, so it's not like you can't improve your score in the meantime. I am less than two years out of a chapter seven bankruptcy and my score is now over 700. In order to get it there (from under 600 before the bankruptcy) is because I have been diligent in paying all my bills on time, getting new credit cards, and keeping the utilization low on them.