Whether you want to know your current credit score, protect your credit, get a loan or apply for a credit card. We are here to help you get it done – quickly, correctly and securely.

Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough money for emergencies, or to make major purchases such as a home, car, or college education.

Accessing credit has become an important part of our lives. Most creditors rely heavily on your credit reports for granting loans. Knowing what is on your credit reports and how to build and repair your credit is an important step to taking control of your finances.

Friday, November 12, 2010

How Can You Eliminate A Paid Debt From Your Credit Report?

A paid debt is one that's really a part of your credit history, and therefore it will remain on your credit report for several years. A poor account will drop after 7 years. Should you paid off an account and closed it, that payment record will benefit your credit report for 10 years.

After you have paid off a negative account, then that account should show the final payment along with a absolutely no balance. It will also be noted as paid. It becomes an essential item to check on, because so many debt collectors neglect to update your credit record whenever you repay an account.

There's a strategy to work out elimination of an adverse item from your credit report. However, in order to negotiate, you must ensure that the ball continues to be inside your court. Should you owe on a past due financial debt and therefore are in place so that you can pay it, then you definitely possess some leverage in deciding the end result of the situation. There's two important aspects that you might have the ability to work out.

1) Payoff Amount:

If you owe $1,000 to a debt collector, realize that they most likely paid anywhere from $40 to $140 for that debt. Something the collect additionally is really a profit. You might be in a position to persuade them to take a lesser amount of in return for your upfront, lump sum payment . It can save you them time as well as cost of ongoing collection efforts and expensive legal action. Just remember that you might end up being on the hook for additional income taxes should you work out more than a $600 decrease in the debt!

2) Removal of Negative Credit Reference:

This is precisely what you are looking to accomplish when negotiating a payoff. Once you have completed the payoff of a debt, this is no longer an option. That debt collector is done spending time on your case and they will not help you. Therefore, you must request removal prior to the payoff!

Understand that a verbal agreement with a debt collector is as good as a promise from a used car salesman. Get something in writing that shows that the debt collector will delete the record from your credit report upon receipt of $XXX.XX towards that debt. One of the best ways to accomplish this is to send the collector a “pay for deletion agreement.”
Pay for Deletion Agreement

A pay for deletion agreement is a written contract that spells out what the debt collector will do upon receipt of your money. At the end of the day, the debt collector wants to maximize profits as instantly as feasible. Most are prepared to take into account removing your negative credit reference concerning their organization completely if you will make a big payment quickly.

When the debt collector agrees to your proposal, just be sure you get a signed copy before you send payment. Additionally, ensure that your payment match ups what you promised and it is in a form that can be tracked. You should either keep a carbon duplicate of the money order that you sent or a copy of the canceled check because it appears in your online banking. Follow through to pull your credit report 45 days later to make sure that they held up their end of the bargain. Otherwise, continue to make contact with them until they adhere to their written contract.

With regard to a sample deletion agreement contract, consider searching on the internet for a draft copy. Many attorneys freely post such templates on the Internet. You can simply find one that fits your needs, and then modify it so that it matches your situation. Remember that if you don't negotiate this deletion prior to submitting payment, the likelihood of getting approval afterward is extremely low.

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