Submitted by Naomi M on Mon, 09/24/2007 - 16:16.
A Credit Deletion Letter - How Important Is It?
One of the best kept secrets of credit repair, is that the quickest way to boost your credit score is to remove any outstanding collections.
Many people have small collection items on their credit report from utility companies, your cell phone company, unpaid medical bills, credit card balances and other small collection items that are showing as outstanding or unpaid debt.
Ouch – That Hurts!
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.
You have a 50/50 chance of the collection agency being agreeable and helping you out this way. What’s even better, you ask to obtain a “deletion” letter from them by fax or mail. This is proof that the creditor intends to delete the item from your credit profile upon payment of the debt.
Why is a deletion letter important?
Because a lot of the time, you want to improve your credit score NOW if you’re applying for a home or car loan and normally the collection agency takes 30 to 90 days to update your credit report with the three credit bureaus.
If you obtain a deletion letter, you can fax it or mail it to the credit bureaus reporting that account to get the item deleted in a few days.
Many people have small collection items on their credit report from utility companies, your cell phone company, unpaid medical bills, credit card balances and other small collection items that are showing as outstanding or unpaid debt.
| Click Here To Learn More About the Following Credit Repair Issues
# Q&A: Who do credit bureaus really work for? # Myths about dispute letters # Learn how to do a Credit Report Audit An audit will help you permanently delete items that are:
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Ouch – That Hurts!
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.
You have a 50/50 chance of the collection agency being agreeable and helping you out this way. What’s even better, you ask to obtain a “deletion” letter from them by fax or mail. This is proof that the creditor intends to delete the item from your credit profile upon payment of the debt.
Why is a deletion letter important?
Because a lot of the time, you want to improve your credit score NOW if you’re applying for a home or car loan and normally the collection agency takes 30 to 90 days to update your credit report with the three credit bureaus.
If you obtain a deletion letter, you can fax it or mail it to the credit bureaus reporting that account to get the item deleted in a few days.
