How to eliminate collections from your credit report

New advice on credit: never let the collectors get the upper hand!

Clean Up My Credit Report: How to Get Rid of Collections

By Irena Bocheva

"How to clean up my credit report?"-that's the question which bothers most of the 35 million Americans with less that perfect credit. According to the popular myths fixing credit takes years, financial effort and careful budget planning. There are, however, far easier and smarter ways to fix credit report. The only thing needed for fast credit repair is credit knowledge.

Here are 3 simple tips that will show you how credit knowledge can be useful in order to clean up your credit report.

1. Never pay collections in full. Always settle for less.

Collection agencies make a bank out of the huge crowd of misinformed people with bad credit. Debt collectors literally pay pennies for every dollar you owe. If the debt was recently charged off, they pay 5-6 cents a dollar. If it's an old debt-they pay 1, 5-2 cents a dollar. Old and out-of-state accounts are usually sold for less than a penny per dollar. If you do the math, you will realize that collection agencies still make a pretty handsome profit out of you even if you pay them 25 % or less. And this gives you pretty good leverage when negotiating.

2. Validation of debt.

Under FCRA( Fair Credit Reporting Act) all credit bureaus, collection agencies and original creditors are required to provide validation of debt upon the request of consumers. If they fail to provide proper documentation, they have to remove the negative item from your credit report. Since most of your debt gets resold to various agencies down the road, most of them don't have the right paperwork to validate your debt. Use this fact to pressure collection agencies to remove an item from your record.

3. Payment for deletion.

This is the best thing you can do in order to raise your credit score. A paid collection will not necessarily raise your score. Quite the opposite-it may lower it. A deleted collection, on the other hand, will boost your score instantly. Negotiate with collection agencies and promise to pay them only if they remove the item from your record. Make it sound like a business proposal and remind them of the handsome profit they would make out of you.

The answer to the question "how to clean up my credit report" is simple-learn more about the credit system and the various loopholes in it. Once you start thinking outside the box, you'll be surprised to find how easy credit repair actually is.

Author: Irena Bocheva
http://fix-credit-score.info/
Do you really think that fixing credit takes a long time? Click on the link above and learn about the fastest ways to raise credit score.

Article courtesy of: Irena Bocheva





This DVD available from Amazon.com promises to help guide you through the process:


Fix Your Credit DVD - How to Fix Mistakes on Your Credit Report and How to Improve Your Credit Score (Credit Repair)

How to check your credit report for free

Now is the time to check your credit report, and the Federal Trade Commission offers these tips on how you can do it for free:

The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.


To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.


You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.

Updates on how to dispute errors in your credit report is found at:

http://www.findhow2.com/repair-credit.html

Credit Repair Reminders Help Clean Up Credit

Bills.com put together this quick credit repair reminders guide that can help you stay on track as you clean up your credit in your effort to get a better credit score:

Bills.Com - Your Guide to Credit Report and Analysis -

You can find more step-by-step credit repair tips at http://www.findhow2.com/repair-credit.html

Do-it-yourself credit dispute letters

One of the best ways to get derogatory marks deleted from your credit report is to learn how to write and submit a dispute letter. It's not hard, and now we've made it easy for you by providing free sample letters showing you how to do it yourself.
Unflattering information that is inaccurate, duplicated or outdated derogatory content appearing in your credit report should be removed promptly once you notify the CRA's (credit reporting agencies).
You can now get free sample dispute letters at http://www.findhow2.com/repair-credit.html
But don't think simply writing credit report dispute letters will get rid of any accurate and timely information.
Information that is true will stay on your credit report, no matter what you do or whichever scam credit report repair firm you pay money to. Our free sample letter formats work, but they are effective only when they are used to request inaccurate, outdated or erroneous entries appear in your credit. No matter what anyone else promises you, that's just the facts.
Incorrect information winds up hurting your credit score. We believe that as the current credit crunch evolves, your credit history will become your most important asset in gaining credit and you should be vigilant to keep it as clean as possible.
You have more rights today than anytime in history to fix your own credit yourself. These sample dispute letters and accompanying free credit repair information is an easy way to improve your credit rating yourself. Feel free to copy and paste our sample letters and customize them to fit your needs. Get yours today.
http://www.findhow2.com/repair-credit.html