Old Stuff Doesn't Drop Off The Credit Report

Mike is under the wrong impression about his credit report ... it's not about to clean itself up.

QUESTION: Mike graduated from college and has some credit card debt from 2001. They will start dropping off his credit bureau report after 7 years, which translates to next year, according to him. But not according to Dave.

ANSWER: That’s a fantasy. Go back and work out a deal with them and get that mess cleaned up. When the collector reports that a debt on your credit report is bad, it restarts the 7-year period. Systematically go back and pay the debt off. Even if you settle with them because you don’t have the money, that’s fine too. Don’t give them electronic access to your checking account and don’t give them post-dated checks.