September 16th, 2016 | Debt
Robert T. Lord
Mortgage Loan Officer at 1 STOP Mortgage
NMLS Lic. 216638
One of the quickest ways of raising a credit score is getting collection accounts removed from a credit report. A collection account will stay on one's credit report for seven years no matter if it is paid or not. In other words the damage was been done to the credit score.
However, there is the magic wand called a deletion letter which can remove the unpaid negative collection account on the credit report.
Here is how it works. After the debt has been declared valid the debtor contacts the original creditor or the collection agency to agree
to a Pay for Deletion Agreement .
A Pay for Deletion Agreement Letter is sent to the creditor stating the debtor will pay X amount of dollars in exchange to delete ALL INFORMATION concerning the account; make it disappear. The agreement includes the creditor to report to the credit reporting agency to delete the account information.
If the creditor agrees to the terms, the debtor requires a company letter stating the agreement before any money is sent. Do not send
agreed amount until the letter is received by the debtor. Always get the Pay for Deletion Agreement in writing (on letterhead) so the debtor has proof that the creditor agreed to delete the negative listing from your report. If they refuse to remove the negative item from your credit report after the debt has been satisfied the debtor provides the letter to the credit reporting agencies to have it removed.
Check out "The Learning Center" on our 1 STOP Mortgage website for comparable detailed information about mortgages, credit, refinancing, purchases....all things Mortgage!
Remember that 1 STOP Mortgage is dedicated to you. Got Questions? We've Got Answers! Never hesitate to give us a call at 901-388-1588.