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Can You Pay to Remove a Bad Credit Report?

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A bad credit score can work against you in more ways than one. When you have poor credit, getting approved for new loans or lines of credit may be difficult. If you qualify, you may end up paying a higher interest rate to borrow. A low credit score can also result in having to pay higher security deposits for utility or cellphone services.

In those scenarios you may consider a tactic known as “pay for delete,” in which you pay to have negative information removed from your credit report. While it may sound tempting, it’s not necessarily a quick fix for better credit.

Key Takeaways

  • “Pay for delete” is an agreement with a creditor to pay all or part of an outstanding balance in exchange for that creditor removing derogatory information from your credit report.
  • Credit repair is paying a company to contact the credit bureau and point out anything on your report that is incorrect or untrue, then asking for it to be removed.
  • You can do your own credit repair, but it can be labor intensive and time consuming.

‛Pay for Delete’ Defined

First, it’s helpful to understand what it means to pay to have bad credit report information removed. According to Paul T. Joseph, attorney, CPA, and founder of Joseph & Joseph Tax and Payroll in Williamston, Mich., “Pay for delete is essentially when you are contacted by your creditor, or you contact them, and you agree to pay a portion or all of the outstanding balance with an agreement that the creditor will contact the credit bureau and remove any derogatory comments or indications of late payment on the account.”

A pay for delete letter should include:

  • Your name and address
  • The creditor or collection agency’s name and address
  • The name and account number you’re referencing
  • A written statement saying how much you agree to pay and what you expect in return with regard to the creditor removing negative information

You’re essentially asking the creditor to take back any negative remarks it may have added to your credit file in connection with late or missed payments or a collection account. By paying some or all of the outstanding balance, you’re hoping that the creditor will exercise a show of goodwill and remove negative information from your credit report for that account.

Consumers have the right to sue credit bureaus and creditors with regard to inaccurate information that, once disputed, is not investigated and, if warranted, removed.

Is Pay for Delete Legal?

The Fair Credit Reporting Act (FCRA) governs credit reporting laws and guidelines. Anything that a debt collector, creditor, or credit bureau does regarding a credit report will be based on the FCRA, says Joseph P. McClelland, a consumer credit attorney based in Decatur, Ga.

Credit bureaus are required to produce accurate credit reports, and consumers have the right to sue creditors and the credit bureaus in certain instances. Specifically, that includes inaccurate information that continues to be reported after a consumer initiates a dispute that the credit bureau fails to investigate.

Technically, pay for delete isn’t expressly prohibited by the FCRA, but it shouldn’t be viewed as a blanket get-out-of-bad-credit-jail-free card. “The only items you can force off of your credit report are those that are inaccurate and incomplete,” says McClelland. “Anything else will be at the discretion of the creditor or collector.”

Removing Collection Accounts From a Credit Report

Whether your attempts to pay for delete are successful can depend on whether you’re dealing with the original creditor or a debt collection agency. “As to the debt collector, you can ask them to pay for delete,” says McClelland. “This is completely legal under the FCRA. If going this route, you will need to get that in writing, so you can enforce it after the fact.”

What you have to keep in mind, however, is that paying for delete with a debt collector may not remove negative information on your credit history reported by the original creditor. The creditor may claim that its contract with the debt collection agency prevents it from changing any information it reported to the credit bureaus for the account. That said, some debt collection agencies take the initiative and request that negative account information be deleted for customers who have successfully paid their collection accounts in full.

Removing Bad Credit History With Credit Repair

Hiring a credit repair firm is another option for paying to delete bad credit information. “Credit repair agencies essentially do the work for you by contacting the credit reporting agencies and providing objections to errors contained in the report or requesting that items that are untrue or incorrect be removed from the report,” says McClelland. In this instance you’re not necessarily paying off any outstanding balances. However, you will pay a fee to the credit repair firm to act on your behalf in having negative information removed.

$30 to $100

The typical monthly fee for a credit repair company

The fees a credit repair company charges can vary. Typically, there are two types of fees: an initial setup fee and a monthly service fee. The initial fee can range from $10 to $100, while the monthly fee typically runs between $30 and $100 a month, although some companies do charge more.

When considering the fees, it’s important to weigh what you’re getting in return. According to the Federal Trade Commission, credit repair firms can’t legally do anything for you that you can’t do for yourself. You just have to be willing to spend the time reviewing your credit reports for negative or inaccurate information, reaching out to the credit bureaus to dispute that information, and following up on those disputes to make sure they’re being investigated.

If you decide that the time-saving aspect of working with a credit repair firm is worth your money, research any firms you’re considering thoroughly to make sure you’ll be working with one of the best credit repair companies available. Joseph says most credit repair agencies are legitimate, but if you come across one that’s making promises that seem too good to be true or using methods to repair credit that aren’t covered by the FCRA, that’s a red flag that the company might be a scam.

Also consider the timing before pursuing credit repair services. “After several years of being on your report, the negative impact on your credit score has likely passed,” says McClelland. That’s because, eventually, negative information can fall off your credit report automatically. Late payments and collection accounts can stay on your credit history for up to seven years. A chapter 7 bankruptcy filing can stay on your credit report for up to 10 years.

Paying your bills on time has the single biggest impact on your credit score.

Repairing Bad Credit Yourself

If you’d rather not pay for delete or pay a credit repair firm, there are a few steps you can take to begin getting your credit back on track.

  • Review your credit reports for negative information that’s inaccurate. Initiate a dispute of inaccuracies or errors online with the credit bureau reporting the information.
  • Consider having someone you know with a strong credit history add you to one of their credit cards as an authorized user. This can transplant that person’s positive account history to your credit report.
  • Research credit builder loans and secured credit cards as additional credit-building options.
  • Get in the habit of paying your bills on time monthly. Payment history has the most significant impact on credit scores.
  • Weigh the pros and cons of debt settlement to resolve collection accounts or charge-offs.

The Bottom Line

Bad credit doesn’t have to be a permanent situation. There are things you can do, including pay for delete, to help your credit recovery. Paying to have bad credit removed can be effective, but it’s worth exploring other options if you don’t have money to pay off an outstanding balance or cover the pricey fees a credit repair firm can charge.

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Credit Repair Companies

What is a Credit Repair Organization?

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A credit repair organization is a company that offers to repair your credit for a fee. These companies boost your credit score by cleaning up your credit reports by asking the bureaus to fix errors and remove erroneous charges. But, is a credit repair company essential for your credit’s health? Read on to find out.

Tips for Using a Credit Repair Organization

If you plan on using a company to help you clean up your credit reports, make sure to put some safety measures in place and find a reputable company such as Lexington Law.

Credit repair companies often get a bad reputation, but that doesn’t make all of them bad or unscrupulous. If you decide a credit repair company can help, there are a few things you should check out before you take the plunge:

  • Don’t sign a contract until you review it – You should always get a copy of the contract in writing before you sign. Review the fees the credit repair organization charges, look carefully at what they say they can do for you, and make sure you’re not locked into a long-term contract. If a company doesn’t let you have an agreement in writing or let you out of the agreement you’re not happy with, you should reconsider.
  • Research the company with the BBB – It’s a best practice to always look at Better Business Bureau reviews, and pay attention to consumer reviews as well. If the company has too many complaints, you should proceed with caution. Also, beware of organizations that don’t have any negative reviews. When researching, a good tip is to look at all of the middle-of-the-road comments first. You can also ask the company for information about satisfied customers.
  • Make sure the company is bonded – A bonded company has posted money to protect its customers from fraud, or in the event they go out of business. Some states require credit repair organizations to be bonded. Using a bonded company is no guarantee, but it gives you an added layer of protection should something happen.

Protecting You Through Law

Because of the reputation of these organizations, and the tendency of some services to use fraudulent methods including scamming consumers, the government put the Credit Repair Organizations Act (CROA) in place. The CROA is designed to protect consumers from dishonest companies. This law helps consumers be aware of their rights when using a credit repair company.

Under the CROA, a credit repair organization can’t legally:

  • Alter your identity, or advise you to do so – this includes applying for/using an employer identification number (EIN) to get a clean slate on your credit history.
  • Tell you to lie about your credit history, or lie on your behalf – this goes for both current and future creditors.
  • Lie about the services they can provide.
  • Ask you to pay for any service before it’s completed.

When you enter into business with a credit repair company, the CROA states that they must provide you with a contract and provide a three-day cancellation window. Only after this window passes can the company start the process.

Credit repair services are also not allowed to insist you sign any form which would waive your legal rights. If any organization disobeys these rules, you have the right to protect yourself by taking the company to court. This right extends for five years, either from the date the wrong occurred or the date you find out about it.

Save Money by Doing These Tasks Yourself

What is a Credit Repair Organization?It doesn’t take a credit repair organization to repair your credit. If you’re considering doing some of the same things they can, all it’s going to cost you is time.

For example, you can monitor your credit reports for free, check for problems, and write to the credit bureaus to fix these errors, or let them know if some of the items on your credit reports aren’t yours. You can also create a better credit profile by paying all your bills on time each month, and by not carrying high credit card balances.

One downfall to the process of doing this yourself is that you have to regularly follow-up with the credit bureaus to ensure your reports get fixed, and that can be very time consuming. Also, you may not have the expertise that a trained credit counselor has, which could be a disadvantage.

Are You Ready to Take the Plunge?

If your credit needs repairing, you should know that it’s something you can do yourself. In addition to fixing negative marks that show up on your credit reports, you can also improve your credit history by getting a car loan. This is an excellent way to make a positive impact on your credit.

Not only does an auto loan add a new line of installment credit to diversify your credit profile, making all your payments on time also helps to build a positive payment history. Payment history is the largest factor that contributes to your credit score.

If you fear you’re not eligible for a car loan because you’re looking into credit repair, think again. There are special finance dealerships across the country that have lenders ready to work with people who suffer from bad credit, no credit, and even bankruptcy. At Auto Credit Express, we can help point you in the right direction by matching you with a local dealer. Get the process started today by filling out our easy auto loan request form now.

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Latin Lawyer – Three firms in Mexican credit repair acquisition

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Garrigues (Mexico) has helped US finance companies Vulcan Capital and Freedom Financial Network purchase a minority stake in Mexican credit repair company Grupo Resuelve tu Deuda from Crédito Real.

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Free credit repair consultation for people in credit distress – Press Release

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Free credit repair consultation for people in credit distress

At a time when the number of people with negative credit listing has increased, Intel Credit Consultants is coming to the aid of the credit distressed individuals and business through offering free credit repair consultation.

With the rate of credit default reaching new levels, a credit repair company is offering individuals and business a free consultation. While announcing this credit repair assistance, the lead consultant at Intel Credit Consultants said this is meant to help individuals and businesses make informed credit decisions. “We are aware of the situation  occasioned by the pandemic and we would like people as well as businesses to come out strong , remove their negative information and improve their chances of getting credit to finance their activities,” said the company representative while urging those in need of credit repair services to register for free consultation.

Intel Credit Consultants relies in a pool of experienced credit repair professionals to help its clients. The team is reputed for its experience and high skills as well as dedication to provide assistance quickly and effectively. The company representative says that the team goes out of the way to ensure customer satisfaction and delivering the desired results.  He observes that the free consultation is a step towards providing a path that will streamline a customer credit path and open avenues where they can live comfortably without being bogged down by issues of negative listing.

“The importance of credit repair cannot be overemphasized, it can open many doors for you especially if you are considering buying a house, a new car, furnish your house, taking a loan among other financial decision. We are providing assistance that will help improve your credit score,” said the lead consultant while adding that they are a reputable firm, a choice of many people looking to repair their credit fast and at affordable rates.

While explaining how they operate, the company spokesperson said the first step is becoming a member through signing up. The new member is supposed to choose a plan where they analyze the available options. The credit repair company has a variety of programs that a member can choose from. Once a customer provides all the necessary information and documents, the company representative says they can now sit and see the progress. “On average our clients see an 85 point increase in their credit score in a period of one month,” said the representative while adding that they have received numerous testimonials from customers who are happy with their services. “We are happy to hear positive feedback from our customers, we are pleased to learn that we made a difference in their lives, providing an avenue where they can improve their financial standing. This is who we are, a credit repair company that makes a difference in people’s lives,” said the representative while reacting on the positive testimonial from the customers.

Intel Credit Consultants promises to continue offering credit repair assistance, encouraging those who are looking for services to take advantage of their free consultation through booking an appointment through their website: https://intelcreditconsultants.com/

About Intel Credit Consultants

Intel Credit Consultants is a US based black owned credit Repair Company. The company that puts its clients needs first making sure they are educated and well informed on every credit decision.

Media Contact
Company Name: Intel Credit Consultants
Contact Person: Media Relations
Email: Send Email
Phone: 866.990.7175
Country: United States
Website: https://intelcreditconsultants.com/



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