There are several ways to erase bad credit. Although nothing can be "erased" from your credit report that was legitimately put there, there are a few loopholes that can help you get around the bad marks on your credit report. These loopholes are seldom used and very few people know about them.
Often times, people turn to credit repair agencies or law firms to take care of all of the details. This can become quite expensive and time consuming. Many of the law firms or credit repair companies will simply have you sign a contract that allows them to charge you a monthly fee while they "work on your credit report".
Of course they are in it for the money and usually want to milk your account for the longest possible time. And if they make only one improvement in your report over the course of a year or two, then they are off the hook legally. In these situations, they have no incentive to fix your bad credit to the fullest extent. They just want to keep the work load down and still charge as much as possible.
The best way to fix your credit is to delve into the nitty gritty details yourself. Many people would rather simply pay someone to do this, but at the same time, many people don't have the financial resources for it. It's best to take your credit into your own hands and figure out all of the particulars yourself. We've all heard the saying: "If you want something done right, you have to do it yourself."
This is very true in many cases with cleaning up bad credit. Although there are many resources available to assist you, you should always maintain complete control of the process rather than farming it out to others who's main concern is turning a profit.
First you need to know what you're dealing with. You need to start by obtaining copies of your credit report. You can go online and get a yearly free copy from the major three credit bureaus: Equifax, TransUnion, and Experian.
Once you have your credit report, go over it thoroughly and find any mistakes. You'd be surprised to know that approximately three quarters of all credit reports have mistakes!
Sometimes you can get bad marks removed from your file simply by filing a dispute with the credit bureau. They have 30 days to respond and provide proof, and if they can't the mark will get deleted from your report.
Also, there are various resources that will allow you to remove items from your credit history immediately! Some of these programs offer plans on how to get a new credit file up and going within the system. They teach you how to build great credit on this new file and make it so the credit bureaus only acknowledge your new file.
Some states allow this, and others don't. With a little research online you can find all the right tools and techniques to start fixing your credit yourself. You can save a lot of money this way and you'll know exactly what's going on with your credit report.
Here's a quote from the Better Business Bureau: "Everything a Credit Repair clinic can do for you legally, you can do for yourself at little or no cost."
Good credit is vitally important to each of our futures and it's up to us as individuals to make sure our files are clean and up to date.