Millions of Mexicans Could See Credit History Cleared This March
For many Mexicans, a negative credit history is a significant source of financial stress, often closing doors to loans and other financial opportunities. However, March 2026 brings a potential turning point, as Mexican law mandates that credit reporting agencies remove certain outstanding debts after a specific period. This could indicate a fresh start for countless individuals.
Understanding Your Credit Report and the “Right to be Forgotten”
It’s important to understand that credit bureaus aren’t punitive bodies; they simply record your financial behavior. Mexican legislation recognizes a “right to be forgotten,” calculating debt timelines using Unidades de Inversión (UDIs) to determine when debts should be removed from your report.
Which Debts Disappear in March 2026?
If you have a negative record, check the following timelines to see if your debt qualifies for removal this March:
- Debts under 25 UDIs: Removed after 1 year of default. If you defaulted in March 2025 on a small amount, your record should be clear this month.
- Debts between 25 and 500 UDIs: Removed after 2 years. This applies to debts that went into default in March 2024.
- Debts between 500 and 1,000 UDIs: Removed after 4 years of record (debts from March 2022).
- Debts over 1,000 UDIs: Have a maximum permanence of 6 years (debts from March 2020), provided the debt isn’t subject to active legal proceedings or involved fraudulent activity.
5 Keys to Improving Your Credit History
The goal isn’t just to “get off” the credit bureau’s list, but to improve your credit score. Here’s how:
- Address the Root Cause: Pay off outstanding debts, prioritizing those with the longest history of default to stop your credit score from declining further.
- Negotiate with Your Bank: Explore restructuring options with your financial institution. Many offer fixed-payment plans.
- Avoid Minimum Payments: Only covering the minimum extends the life of the debt due to high interest accrual.
- Be Punctual: Pay your bills (utilities, phone, existing loans) on time. Consistent, positive behavior improves your rating.
- Exercise Your Right of Reply: If you find errors on your report – debts you didn’t incur or incorrectly recorded payments – file a claim with the credit bureau. They are legally obligated to respond within 29 business days.
Beware of “Quita” (Debt Settlement): A Double-Edged Sword
Debt settlement, or quita, involves paying a reduced amount of the debt. While it can stop collection calls, it comes at a cost. Your credit report will be marked with a “97” code in red, signaling to future lenders that you didn’t fulfill the original debt obligation. This significantly lowers your credit score and can hinder access to future credit for years.
Frequently Asked Questions
- What is a UDI? A UDI (Unidad de Inversión) is a reference unit used in Mexico to adjust the value of certain financial obligations over time, protecting them from inflation.
- Can I check my credit report for free? Yes, you are entitled to a free credit report from the major credit bureaus.
- What if I dispute a debt and the credit bureau doesn’t resolve it? You can file a complaint with the relevant consumer protection agency.
- Will removing a debt automatically improve my credit score? Not necessarily. Your score is based on multiple factors, but removing negative information is a positive step.
