| "How to clean up my credit report?"-that's the question | | | | bureaus, collection agencies and original creditors are |
| which bothers most of the 35 million Americans with | | | | required to provide validation of debt upon the request |
| less that perfect credit. According to the popular | | | | of consumers. If they fail to provide proper |
| myths fixing credit takes years, financial effort and | | | | documentation, they have to remove the negative item |
| careful budget planning. There are, however, far easier | | | | from your credit report. Since most of your debt gets |
| and smarter ways to fix credit report. The only thing | | | | resold to various agencies down the road, most of |
| needed for fast credit repair is credit knowledge. | | | | them don't have the right paperwork to validate your |
| Here are 3 simple tips that will show you how credit | | | | debt. Use this fact to pressure collection agencies to |
| knowledge can be useful in order to clean up your | | | | remove an item from your record. |
| credit report. | | | | 3. Payment for deletion. |
| 1. Never pay collections in full. Always settle for less. | | | | This is the best thing you can do in order to raise your |
| Collection agencies make a bank out of the huge | | | | credit score. A paid collection will not necessarily raise |
| crowd of misinformed people with bad credit. Debt | | | | your score. Quite the opposite-it may lower it. A |
| collectors literally pay pennies for every dollar you | | | | deleted collection, on the other hand, will boost your |
| owe. If the debt was recently charged off, they pay | | | | score instantly. Negotiate with collection agencies and |
| 5-6 cents a dollar. If it's an old debt-they pay 1, 5-2 | | | | promise to pay them only if they remove the item |
| cents a dollar. Old and out-of-state accounts are | | | | from your record. Make it sound like a business |
| usually sold for less than a penny per dollar. If you do | | | | proposal and remind them of the handsome profit they |
| the math, you will realize that collection agencies still | | | | would make out of you. |
| make a pretty handsome profit out of you even if you | | | | The answer to the question "how to clean up my |
| pay them 25 % or less. And this gives you pretty good | | | | credit report" is simple-learn more about the credit |
| leverage when negotiating. | | | | system and the various loopholes in it. Once you start |
| 2. Validation of debt. | | | | thinking outside the box, you'll be surprised to find how |
| Under FCRA( Fair Credit Reporting Act) all credit | | | | easy credit repair actually is. |