What is a deletion letter?

How does it boost my credit score?

A deletion letter is one of the best-kept secrets of credit repair. It’s the quickest way to boost your credit score and remove any outstanding collections. Many people have small collection items on the credit report, for instance unpaid phone bills, unpaid medical bills, charge card balances and other small collection items that are showing as outstanding debt. Even an unpaid collection item of $25 can hurt your credit score by 20 points and more.

Because of this, the quickest way for credit repair is to call up the collection agency that you owe money to and ask the golden question: "Do you delete?" Many people don't realize that collection agencies will voluntarily delete your derogatory item from your current report if you just ask them to and pay them the balance that you owe. Fifty percent of the time, the answer to the question "do you delete" is "yes."

What's even better, you can ask for a "deletion letter" that is proof that the creditor in question intends to delete the item from your credit bureau file.

Why is this letter so important?

Because, many times you're looking to improve your credit score NOW as you're applying for a home loan or car loan and time is of the essence. The creditor or collection agency would normally take 30 to 90 days to update your credit report with the bureaus. If you obtain a deletion letter, you can fax it to the credit reporting agencies to get the collection off your credit report within a few days. Thus, you’re effort in credit repair via the deletion letter can quickly boost your credit score.