Doug's Credit Center Blog

How Can I Clear Junk Debt from My Credit Report?


Dealing with credit reports is a sensitive issues because these documents have the ability to affect so many different components of your life. For example, having low credit scores could absolutely prevent you from obtaining a car loan. While you might think that all debt is junk, the term “junk debt” is actually a very specific one that you need to know.

What is “Junk Debt”?

People have all kinds of misconceptions about what junk debt is. Here are some of them:

  • Junk debt is debt that is not yours.
  • When you take an offer from junk mail, you get junk debt.
  • Junk debt is debt leftover from long ago.

The third guess is the closest to what junk debt actually is, but it’s still not accurate. Let’s say that you just stop paying a credit card or a car loan, and it becomes a charge-off on your credit report. The crediting agency can actually sell the junk debt to another party, and that third entity can try to sue you for the debt.

Is The Junk Debt Yours?

The first question you must ask yourself is, “Does this junk debt actually belong to me?” You might find that it does not. Perhaps you have never had a charge-off in your life, and you just do not know where these problems are coming from. If the debt does not appear to be yours, then you need to call the crediting agency that is reporting out. Find out what the procedure is for removing it from your report.

Other Answers

Junk debt is a tough situation because the debt has already traded hands and gone through so much at this point. You could find out if it is possible to just pay the junk debt. However, if the collector is trying to sue you for the money, talk to a lawyer about your options.

These situations can be really difficult and serious ones, so you really need to know what you are doing. You absolutely must consult with professionals. Otherwise, you could wind up making the situation even more worse for yourself than it already is.

Whether you are looking to take out a bad credit loan or not, having junk debt on your record is just not something that you want. It can cause a lot of problems, and you simply do not want to worry that someone is going to sue you.


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