If you have bad credit it can really create havoc in your financial status. At the same time it is also true that there are ways in which you can handle such credit and if you follow such steps precisely and diligently then the good news is it does not last forever. Over a period of seven to ten years you bad credit can eventually become a good one. Banks and other financial institutions follow the practice of purging delinquent accounts automatically after seven years provided that there are no errors in it. If there is any errors then you credit history may show a bad credit even after 7 years.
The Age Of Debt
Dealing with old debts and managing bad credit starts with knowing the age of it. This is the primary and basic criterion to get it cleared. The overstaying of such old credits may be due to the reason that the companies that are responsible for preparation of such credit reports may not have received all the correct dates on time. It is easy to calculate the age of a debt when such cases are dragged to the court but when it is not then you will have a hard time to calculate the age if the report prepared by the specific company has errors in it.
The SoldOff Debts
The seven year credit report clock is the primary element for calculating the age of a debt. There is no separate clock for sod off debts and irrespective of the number of times a debt may be sold or resold it is the seven year clock that is considered for your delinquency with the original lender. You can avail your credit report from several agencies very easily and it is always advised to get multiple credit reports from different agencies. You can see it by yourself that all are not identical leaving a scope of imagining that there might be errors in it as well.
When such debts are really old, it is time that you should write to the credit bureau.When you write to the credit bureau, use the contact information to send the letter by post and certainly not online. Though it may take a longer time but this traditional method has lots of benefits as you can retain the receipt acknowledgment for future reference. The credit bureau will now ask the lender to verify why the debt is still featuring in the report.
Time For Verification
If such verification is not possible then it is removed from your credit report automatically. If you can substantiate your claim with adequate proofs and documents then it will help you to nullify the claims of the collections agencies who want to prove that it is a nee loan. Proper documents like letters from the original lender, court filings and others will help you a lot in substantiating your claim. Once all this is done, you can now apply for credit card consolidation loans to get rid of your existing debts.