How To Negotiate Your Collection Accounts On Your Credit Report
Negotiating to a better credit score As a credit consumer, it is hard to get a collection account on your credit reports. However, you can negotiate a classified item or negative listing so you can increase your credit score. This is because credit agencies gain information from creditors for free.
Collection agencies can delete your credit once you have paid them but sometimes they will act like they can’t. In this occasion you may have to pay them more since it is vital to remove their listing on your report.
It is also important to note that any negotiation should be done in writing and never on the phone.
Best to worst options on how collection accounts are listed
Paid as agreed or Account close-paid as agreed
A notation that the account has been closed because of on time payments.
Paid A paid notation is an unbiased or neutral notation on your account.
Paid charge off/collection/was __ days late
LATE PAYMENT
This is a negative notation to have since it can give an impression that the debt wasn’t paid at all. Nonetheless, of this is the deal that was given to you, it is best to accept it and dispute it later on since most creditors substantiate credit that has been paid off.
Settled A settled notation basically means that a compromise has been reached with your creditors. Like a paid charge off notation you should accept this and dispute it as soon as possible.
Final Thoughts Always seek to have a complete removal of a negative listing on your credit report, if not negotiate according to the options presented.
Furthermore, have your status changed from your original creditor since they are legally bound to show $0 since it is not a charged off account anymore.
For more information read http://www.newhorizon.org/credit-info/collection-accounts-credit-report-negotiate-way-bette r-credit/
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