How to Erase Bad Credit

Let’s say that you suddenly lose your job or have some kind of accident causing some kind of unexpected medical expense. You handled the unexpected road bump well and paid off the debts you just had. Through all of this, you think your credit is unscathed because you always paid your bills on time. However, it turns out you were wrong and your credit rating has been changed from good to having bad credit.  I guarantee some people reading this can relate.

Or… you always paid your credit card debts on time, but unbeknownst to you, your credit score was affect due to a banking error. Turns out because of this error, your credit score has been knocked down and you have trouble getting a loan. I bet this scenario will sound familiar with some people reading this blog.

The biggest mistake you can do is to not do anything at all.

Stay Relaxed and Don’t Feel Vulnerable

Before we proceed, I would like you to know there are people out there that may try exploit your troubled financial situation. After convincing you of their supposed professional financial skills, they will most likely ask for payment for their service to erase your bad credit. The reality however is that you don’t need to be a financial genius to get this problem fixed. Understand there will always be people trying to get a quick buck out of your troubles and you will see them everywhere on magazines, infomercials, the internet, or even from your co-worker.

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The truth is, you can fix negative credit errors easily by yourself… and for free! Just be careful when people start asking for money.

Procedures for Removing Bad Credit

Removing bad credit is actually quite simple. All you need to do is write your bank a proper letter requesting the bad credit to be removed. That’s it! It would not hurt to add copy of evidence you have to enforce what you are saying. Show them all the debts that have been paid off and kindly ask them to reconsider your credit. All this can be done in less than 15 minutes.

Additionally, do this all on paper and make a copy for yourself. You need to document what you are doing to a record on your credit file. When you mail it in and ask for a receipt to to have proof you sent the mail.

Here is a sample request letter:


To: (Bank or lender's address)

For: Correction of Credit Report

Your Name: Nucky

Your ID number (Social Security or Bank Acct.)

Dear Sir/Madam,

After reviewing my credit report, I believe the information on the report is incorrect and most likely incomplete/false. Please confirm this and delete this from my record. I would really appreciate if you inform the credit bureaus informed the incorrect information on my account. If you have any questions regarding matters, please feel free to call me at (your work or home).

(Usually I would end things here to keep it short and simple. But it would help the company tremendously if you add a little more information about your problem as in the example seen below)

The credit statements that I received (put the date) state that I did not make any payments on time on (date) . However, I have made these payments on time. If you need the receipts proving this, I will gladly send you a copy of them .

Thank you for your time and I look forward to hearing from you soon.

(Your Name, Address, Phone Number, and SSN)


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The letter is nothing fancy. It is straightforward and polite. Understand that mistakes with banks do happen so be cool about it and don’t rant. Once you explain your position through a professional manner, they will deal with your request and remove the bad credit. The biggest mistake you can do is to not do anything at all.

Additional Other Resources Online Can Help

I know my post can be very general so check out this link from the FTC (Federal Trade Commission) for more information on disputing your credit score:

Here is also a sample letter to help you write out your letter:

If none of the links above doesn’t help, Google a bit more and I’m pretty sure there will be a link that will help you with your problem.

Remember that it’s not hard at all.  All you need is a letter (not email) and some evidence proving they are wrong and you are right. Keep those statements, receipts, and letters.

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