How likely is it to get small bills that have gone to collection REMOVED from your credit report?

Deal Score0

I’ve heard that when you have a bill that has gone to collection that sometimes you can work out a deal with the collection agency where they can actually remove it from your credit report all together if you pay x amount.

I have a few bills in collection but they are very small, like $ 20-$ 50 so it’s pretty annoying such a small bill is hurting my credit score. I was wondering what the likely hood is of convincing these collection companies to completely remove the bill from my credit report if I pay it off in full?

Also if I’m able to do this how long does it typically take to disappear from my credit report.

At first attempt if they don’t agree to doing this should I just tell them that I won’t pay it then. None of these bills are increasing so technically there isn’t much incentive for me to pay them off. Whats the best approach when trying something like this, should I play hardball or should I tell them some sob story about how I really need my credit score improved or what ? Or do I even need to go through all that ?

Thanks in advance!

  1. Reply
    July 21, 2011 at 4:03 am

    Here’s how to negotiate the removal of the items from your credit report

    Send the debt collector a letter via certified mail + return receipt with the following statement:
    I am willing to settle this issue in exchange for your agreeing to remove this item from my credit file upon receipt of $ x from me. This account will be considered settled in full upon receipt of this amount. Upon a receipt from your company confirming agreement to these terms on your company’s letterhead with an authorized signature from a manager, I will mail you a USPS money order for this amount.

    This is called a Pay for Delete agreement. If they refuse to give you this written agreement first, there’s no point in paying them. Never accept verbal promises…get the terms in writing first.

    The debt collector could not care less about your credit rating. Use the fact that they want your payment as a negotiation tool.

  2. Reply
    July 21, 2011 at 4:44 am

    Why are you letting such small bills go to collections anyway? It seems to me like it would be so much easier to have paid them in the first place rather than wait untill they go to collecitons and going through the trouble of offering them a ‘sob story’ and payoff to have the debts removed.

    Now that they are in collections, the only thing left to do is talk to the collection agency and ask them what you can do to have the debt removed from your credit report. I am not really sure that there is anything you can do once they are on there, other than go ahead and pay them and then contact the three major credit reporting agencies and let them know the debt was paid.

    And while you may be ‘annoyed’ that such small bills are hurting your credit score, it is very useful information for a potential lender. I don’t even have to be a bank employee to tell you that the chances of getting a loan for more than 100.00 from anybody besides loan sharks is next to nada when you can’t make good on a 20.00 debt! You have showed a tremendous amount of irresponsibility by letting these small amounts go to collecitons. Most creditors give you the better part of three months before they will even turn over a debt to a collecitons agency. You could have walked the side of the roads and picked up enough aluminum cans or had a yard sale to pay off those debts!

  3. Reply
    L R
    July 21, 2011 at 5:26 am

    From experience, collection companies will promise you anything, just to get what “they” want. Yet they won’t write anything off your credit. Also, DON’T take a settlement amount either because the remaining amount will come back to haunt you. Like if you owe $ 1000 on a credit card, & the company “claims” they’ll settle for $ 650 & you send them that $ 650. The remaining amount still stays on your credit report but yet you’ve forgot about it. A couple years down the road you get a letter from a different collection agency for the same thing for the remaining amount. Those are collection agency scams! In order to fight ANY credit problem, you have to deal with the 3 major credit bureaus. & file a formal complaint, the ones that actually deal with your credit score. Then the 3 major credit bureaus STILL probably won’t care enough to remove it anyways. They claim it takes 7 years for a non paid bill in collection to be removed from your credit & 10 for bankruptcy. The easiest way I have found to improve your score is to go about 2 or 3 years paying all your bills on time & don’t max out your credit cards because the more you owe on a credit card, lowers your credit score unless you pay it off each month. I’ve been through all this crap before. Oh, & most people don’t know this but every time you go to apply for a loan such as a car, credit card, anything where someone has to bring you score up, that lowers your score as well….not by much, but it does.

  4. Reply
    July 21, 2011 at 5:47 am

    If these are single entry items like medical and utility bills, you should be able to get a delete for pay agreement. If they are regularly report items like credit cards, delete for pay doesn’t work as well since the collection agency can only remove what they report. The original creditor’s charge off will remain.

    Send the collection agency a letter offering to pay $ x in exchange for deleting the item. Specifically say that this is not an acknowledgment of the debt but an attempt to expedite removal of the item from your credit report. Ask that an authorized ageny of the collection agency sign and return a copy of your letter indicating acceptance of your offer. Put lines at the bottom of the letter for signature, date, and print name. When you get the signed copy, mail them a money order.

    The item should be removed within 60 days. However, some collection agencies will sign the agreement, take your money, and still not remove the item. If that happens, there’s really nothing you can do. The credit bureaus won’t remove the item just because you have a pay for delete agreement.

    If the collection agency doesn’t accept your initial offer, wait a few months and send them another letter, offering less money.

    Leave a reply

    Register New Account
    Reset Password