Free tips on the fastest way to repair personal credit and raise your credit score!
Even an unpaid collection of $30 can hurt your credit score by 20 points or more. So the quickest way to repair your credit is to call up the collection agency that you owe the money to and ask the magic question, “Do you delete?” You are asking the agency to delete their collection from your credit report and instead report the account as “PAID” or “PAID AS AGREED.” Many times, the collection agency will say, “Yes” in return for paying off the debt. By Naomi M.
In our last, repairing your personal credit, post we discussed getting an accurate score or at least the one lenders will be looking at from www.myfico.com. In this post we will be discussing the first thing you can do when you find negative information on your credit report.
As the quote above mentions even collections as little as $30 can drag you score down as much as a $300 collection. So one of the easiest steps you can take to clean up your credit is to find the lowest collections on your credit report and identify the creditor’s contact info and your account number with the collection agency.
You can begin my calling the collection agency and having them locate your account. Never admit that the debt is yours but you can say that it would be a hassle to dispute this and since it’s such a small amount your willing to pay it off if they will give you a letter of deletions. Make sure you ask them to check with the client and often they will let you pay it off and send a deletion ‘tape’ to the three credit reporting agencies.
You can ask for a deletion letter and then send those off to the CRA on your own but I have found that when the Collections Agency say they will delete a negative account they usually do.
One thing you should NEVER do is pay off a collection that a creditor refuses to delete…. simply marking it as a paid collection will not improve you score and make it harder to dispute!
I wish you all much success in your efforts in repairing your personal credit files. Please check back here for more helpful tips on repairing you credit reports and also check out our information on Building Business Credit with no social security number or no personal guarantees!
Tags: credit repair, imporve you credit score, repairing personal credit