Free Credit Repair Tips 7 - Pay Collections for the Quickest Results

This tip will show you a fast way to raise your scores by paying off your collections. This is the quickest way to change things.

Timeliness of Your Payments Affects Credit Scores

When you start falling behind on your bills, like the phone or utility bills, these companies proceed to take action. They do this by putting your account into collection or reporting when you are over thirty days late on your credit report.

This is a warning signal to financial institutions. Why is this? Well, these financial institutions have observed that most people who start getting behind on their bills will also default on a loan.

When you have unpaid collections or a report of more than thirty days late on any payments recorded on your report, this can lower your score thirty points or more.

That affects how the financial institutions look at you. You may get denied for that mortgage loan you want so badly. Or you may get approved but will have to pay a high interest rate.

So what can you do to improve this situation fast?

Eliminate Debt Fast by Paying Your Collections

The good news is paying collections is one of the fastest ways to raise your credit score. The best way to do this is to call the collection company and ask the question: Do you delete?

When you ask this question you're talking in "collectors language." You are asking if the collection agency will completely remove your debt from the credit reports if you pay your debt.

This is important, because if you are going to go through the process of paying this debt off, then you want the most bang for your buck!

Use Free Credit Repair Tips 7 in Your Credit Repair Process

Now let's get our surgical gloves on by negotiating. When you contact the collector, work on getting a deal out of them. How can you do this? They want the money, so ask for something in exchange. Tell them you want the account completely removed from your report in exchange for payment. Be sure to put these negotiation in writing.

How can you do this?

First you can send your request in writing. Suggest a settlement in the form of payment if the collector removes the account from your reports.

Now don't send the payment or take action right away. Wait for a response in writing from the collector. Why in writing? That's your proof of the agreement between you two.

It would be terrible to keep your end of the bargain and they fail to keep theirs because they said "we never said that." So you want it in writing!

Second, if you negotiate by phone, don't make payment until the collector faxes or mails a letter explaining the terms of the agreement. Remind them you need this first!

I want to prepare you, most collectors will want payment in full. When this happens, get those free credit repair tips 7 negotiating gloves on. Be willing to pay in full but you want something in exchange. You want the collector to remove the account from your

What if They Won't Remove?

Of course you want the collection removed from your credit report. But if they will not remove it completely, have them update your file as "Paid in full." Remember to get the agreement in writing before you pay the account in full.

Check with the collection agency to see if they have an up to date computer system that can remove your debt from the credit bureaus immediately. If they do, you will be able to have your collection cleared in 24 hours.

Perhaps the collection agency will not "delete", well pay them anyway. Keep in mind the "collection paid" showing on your credit report is much better than a collection owing.

So if you need your credit score raised in a hurry, use free credit repair tips 7 to accomplish this and eliminate debt fast.

Proceed to free credit repair tips #8 next.

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