Removing Credit From Your Credit Report

thumbnail with caption "manage bad eidl debt" one side of the page has "bad credit with a red X and the other "good credit" with a green check.
portrait thumbnail with a PUG mug shot with a sign that says "i crewed a credit card" the title of the thumbnail is CAN BAD CREDIT DISAPPEAR.
Click to Watch our One Minute Video

Have you been approached by people who claim they can repair or restore your credit and improve your credit score?

At some point in EVERY person’s life and career, your credit score will be reviewed, whether for financing, credit cards, insurance, or other applications.

We see how often this topic comes up in our business including, in our humble opinion, how people obsess over things they have no control over. This is one of the many reasons we started our Biz Glitch 366 Project

Spoiler alert: Bad credit, if it was truly your account,  absolutely CANNOT be permanently removed from your credit report. Period, full stop.

The Bottom Line: if a credit account reported on your credit report (whether good or bad) was truly your account, it cannot be permanently removed because at some point the investigation will conclude and the disputed information will be reported back onto the credit report.

We know that when certain activities in business operations require financing pursuits, this could become an emotional crusade because most people will get preoccupied with various concerns such as:

  • “Are they going to run my credit?”
  • “Will it be a hard hit?”

These are wasted emotions because if the credit precludes a business owner from proper financing channels to obtain working capital, the damage is already done. It’ll take longer to address the problem than the timeframe the business owner was expecting to finalize a deal to walk away with some cash.

Watch this one-minute video on removing defaulted and discharged loan obligations from your credit score and how to protect yourself from scammers.

Here are some credit basics to know, and the reasons why credit repair/restoration is a scam:

✅ Federal regulations allow a consumer to dispute an “error” on their credit history. Examples of errors can be a misspelled name, incorrect address, or credit account in the name of a family member with a similar name. These are the typical “errors” that absolutely can and should be disputed and absolutely can be permanently corrected on a credit report.

✅ A credit bureau (typically the “Big 3,” TransUnion, Experian, and Equifax) has 30 days to investigate and resolve or respond to the consumer’s dispute. During the dispute investigation period, the credit bureau is required to remove the disputed item until the investigation either proves the dispute to be accurate or proves the information to be correctly reported.

Often, the investigation period can take longer than the allowed 30 days. In that case, the credit bureau sends notification of the continuing investigation for an additional 30 days to remain in compliance with Federal regulations. The disputed item(s) remain “removed” as the investigation continues.

✅ If the dispute on a credit report is for a credit account, the credit bureau contacts the original creditor to provide proof of the validity of the account and reported information.

For example, if a consumer named Joan Maria Hall disputes a mortgage account that appears on her credit report because the account belonged to her mother, Joan Helen Hall, the credit bureau requests verification from the mortgage holder. Because the dispute can be verified as an account in a different person’s name, when the mortgage holder reports the correct name, the credit bureau is required to permanently remove the disputed account.

However, if the disputed credit account is truly in the name of the person filing the dispute, then the disputed account will be restored to the credit report once the investigation determines the account has been accurately reported by the creditor.

Click to Watch Our 30 Second Video

✅ The “scam” of credit repair/restoration is the presentation of a credit report showing the disputed account(s) removed. What the scammers don’t tell the unwitting consumer is the investigation is still ongoing and the “clean” report is only the result of the temporary removal(s) of accounts and the 30-day extensions of the investigation period.

✅ Updating status: it is a worthy exercise to dispute credit accounts that report incorrect status. For example, if a collection account has been paid off, but the credit report shows the account as still “open” and not paid, then a dispute should resolve that account to show as paid.

Likewise, a single account might be reported incorrectly as multiple different accounts.

Here’s a 30-second video on how people are also falling for scams about removing EIDL from your credit report. Please stop listening to this nonsense.


The Myth of Running Credit

Credit reports is one of Trevor’s areas of special expertise after a 30 year career in the mortgage industry. 

In his experience, inquiries will impact (the correct word as per the credit bureaus) by 8 points.

Trevor has read thousands of credit reports to witness these results. 

This “myth” of credit inquiries damaging a credit score is decades in the making and is now so firmly baked into urban mythology causing us to respond to concerns, about running credit, hundreds of times.

If someone is LEGITIMATELY running your credit, having inquiries on your credit report is NOT the reason your EIDL loan is declined. READ THAT AGAIN PLEASE.

Please stop wasting valuable energy with unnecessary excuse-making and finger-pointing, and start drafting a coherent, sensible, factual statement to address your credit history.

And please start getting your financial documents in order and address any inconsistencies that could cause SBA to decline your loan. The really good loan officers try to fit your business into the guidelines to accomplish an approval but often, business owners fight the system thinking there is a conspiracy.

Be better than the SBA and own your responsibility to the process and stop worrying about HARD INQUIRIES. I promise you INQUIRIES are never the reason for a declination. It’s too often mistakes made by mistakes in their rush and disregard to tend to the details.

Credit Advice: The Real Deal

We read an online article recently about credit and credit scores. The writer was complaining about how they couldn’t get approved for credit for a major purchase. He was denied due to a credit score of 575. In the article, he complained how this credit score is wrong, how the creditor who denied him must be committing fraud, and on and on. 

This article writer referenced a consumer-credit app that all too many people use, some “karmic” thing that purports to guide people on improving their credit histories.

Based on 30 years’ experience in mortgage banking and having read thousands of credit reports, my response to the author of the article and a commenter is below. We promise you, as you will see, credit ain’t a rocket science.

People in the world spend too much time focused on their credit scores, only to lead to the kind of frustrations experienced by the article writer referenced above. I’ve been giving this kind of credit advice for decades because we know it WORKS.

Our opinion is that consumers have been trained to spend entirely too much time focusing on credit scores. If you want a good credit report and good scores there are several basics to follow.

  1. Longevity counts. The longer your credit history (assuming on-time payments, no derogatory accounts, good utilization), the better your scores.
  2. You have 3-5 accounts open and ACTIVE at all times. Active means using that account every month: a car loan you’re paying, a credit card you use for groceries, a student loan (or more), a mortgage. Even if it’s only credit cards, 3-5 accounts is the standard for good scores in my experience.
  3. STOP paying off your balances to zero permanently and STOP paying off your credit card balances at the end of the month. Credit scoring relies on you actually USING credit. If your complaint is that you don’t want to pay the interest, fine, but don’t complain that your credit scores aren’t higher. It’s a scoring system based on USING credit over time. FYI: “time” does not mean monthly, rather over long periods of time, consistently. (See #1 above)
  4. Utilization. I know all the online “experts” say “Don’t use more than 30% of your available revolving balance.” What a bunch of scaredy-cats! We’ve seen thousands of credit reports thanks to Trevor’s financing career. He’s seen folks with up to 50% utilization of their available revolving balances with excellent credit scores. When you go above 50%, then it can get interesting. Depends on your overall credit history. Is it one account above 50%? Is it several? Did you just get a new house and mortgage? Did you trade in your leased-car last month? Yeah…interesting. (See #5 below)
  5. Credit is a “living breathing thing.” Not like as in a “monster” but certainly there’s an organic aspect to your credit history. There’s a lot going on there. That’s why it’s nearly impossible to control your credit scores no matter what all those “karma” websites will tell you. I have had many people I’ve worked with (including one right now) who are tweaking their credit based on what “karma” tells them to do with the flick of a finger on the screen of their smartphones. I just shake my head as I watch their frustration as to why in the longer term they’re not hitting the desired scores. There are no short cuts. A credit history determines your credit score. And a credit “history” is exactly that: a long-term project. (See #1 above)
  6. Yes, pay your bills on time. Duh. Note, a “late” payment reported to a credit report is for a payment 30 days late or more. If you pay two days after the due date, but within 30 days, you’ll incur a late charge, but not a derogatory “30 day late” mark on your credit report.
  7. If you’re planning on big purchases in the next few months, don’t close any accounts and don’t pay them down to zero. (See #3 above). If you’re not planning on big purchases, close those accounts you’ll never use again. But remember to keep open 3 to 5 accounts current and active, keep your utilization of revolving credit below 50% of available balance. Don’t zero out your accounts. Pay your bills on time.

You now have your open source access to how your credit scores are calculated. Now, with all that extra time on your hands from NOT monitoring your credit scores, order a pizza, pay for it with a credit card, give the delivery person a generous tip, and kick back and watch “The Queen’s Gambit” on Netflix (it’s AWESOME).

If you want to rebuild your credit, we’ve written an EBOOK with tactics and strategies to begin rebuilding your credit.

Here is my response to the author of this article:

I’ve [Trevor] been in finance for over three decades and I’ve read thousands of credit reports. 

Here are my observations and advice:

STOP wasting your time with that karma nonsense. It’s a rabbit hole that, in my professional experience, does very little to assist consumers with valid credit guidance.

Credit scoring and credit reports are “organic” to a certain extent: many moving parts shifting each month. That’s why the “karma” advice and others like it can’t work correctly all the time, or in the long term.

Credit scores update once a month. Period. Not daily, not weekly, not based on activity. Creditors choose to provide reporting information to the THREE credit bureaus (Trans-Union, Equifax and Experian). The accuracy of that information can often be questionable.

No consumer anywhere can obtain the same credit scores that we use in the financial services field. We use “CLASSIC” FICO scores. Even should you obtain your score from the FICO website, it’s not a CLASSIC score. 

I’ve seen differences of as much as 100 points in either direction between the consumer-access credit scores and CLASSIC scores.

Financing decisions are made using CLASSIC FICO scores by pretty much every credit-decision maker everywhere.

Creditors of all sorts (mortgages, car loans, credit cards, etc.) have varying criteria from one creditor to the next to determine creditworthiness.

Visit for great, legitimate, free advice on all things credit related.

NEVER ever, ever, ever, ever, ever, ever, EVER pay anyone to repair/restore/add trades to your credit report. I’ve met too many people over my career who have done that only for me to tell them months later how terrible their credit is and, no, I cannot approve them for a mortgage to buy a house. 

They respond with the kind of outrage you express in the article. Those credit “repair” people are scams, IMHO. I don’t care if they now appear as “legitimate” on the FTC website: I haven’t seen a single case where those types of services assisted a consumer in the long term. 

And credit is LONG TERM.

As for people offering to add trades to your report: dunno, but that sounds incredibly fraudulent to me.