If you have some negative on your credit that you want to get rid of, you’re not alone. Items such as missed payments, overdue accounts, and repossessions can all have a negative impact on your credit. So what can you do to get rid of your past mistakes? You can use what they call a “Pay for Delete Letter.”
Now, this isn’t to say that this letter is going to fix everything. It is helpful to negotiate balances that you currently have in exchange after removing those negative marks on your credit.
Without further Ado, let’s talk about how you can use a Pay for Delete letter to help improve your credit.
What is a pay for delete letter?
A Pay for Delete letter is a method of negotiating with your creditors that helps remove negative marks from your credit report and improve your credit score. You typically use a Pay for Delete letter in situations where you actually have outstanding debts but are willing to negotiate with a creditor to remove that negative mark on your report.
When you send a pay for delete letter, you are negotiating with the Creditor that you will pay a portion of the balance in exchange for removing the negative mark on your report. If you are successful in getting the negative Mark removed on your report, you will ultimately improve your credit score.
Pay for delete letters are a fantastic and easy route to take if you are really stuck and need to improve your credit score. Not only do you save yourself from having to pay all of the outstanding debt, you can also negotiate that you only pay a portion and improve your credit score.
How to write a pay for delete letter
If you are going to go ahead and write a pay for delete letter, they are certain steps that you have to follow. As long as these steps are followed correctly, you have a good chance of negotiating a bill. If not, it’s worth a try and you have nothing to lose.
1. Find the debt collectors that own your debt
The first step is to figure out which debt collector owns your debt. More than likely, they would have already contacted you in an attempt to recuperate the debts. If not, you can contact the original lender and they can direct you to who currently owns your debt.
2. Write a pay for delete letter to the debt collectors
Once you’ve completed Step 1, Step 2 is to send out your pay for delete letter to the debt collectors. In this step, you are basically outlining and negotiating with the debt collectors how much you are willing to pay. You will also be stating that if agreed upon, they will remove the negative mark on your credit report.
3. Pay the agreed amount and keep records
If you are successful in negotiating with the debt collectors, then go ahead and pay the agreed amount. Before doing so, make sure everything is in writing and signed. You always want to keep your communication, letters, and agreements documented for future reference.
Pay for delete letter template
To help you get started, here is a template that you can use for your own pay for delete letter. This letter doesn’t need to be complicated or full of complex words. It is simply a way to start your negotiating process with the debt collectors.
Always remember to use your own words and modify this letter as you see fit, depending on your circumstances.
[Your name]
[Your return address]
[Date]
[Debt collector name] [Debt collector Address]
Re: [Account number for the debt, if you have it]
Dear [Debt collector],
I am writing this in response to your recent correspondence related to account number [xxxxxx].
Please note that I do not acknowledge any liability for this debt, however, I’m willing to negotiate and compromise. I can offer a settlement amount in exchange for your written agreement to the following terms:
• You agree to accept a payment of [$xxx.xx] as satisfying the debt in full
• You agree to remove all information regarding this debt from the credit reporting agencies within 15 days of payment
• You agree to not to discuss this agreement with any third party
Should you agree, please send a signed agreement with the aforementioned terms from an authorized representative of [Debt collector].
If I do not receive your response to this offer within 15 days, I will withdraw the offer and request full verification of this debt.
I look forward to resolving this matter quickly.
Sincerely,
[Your name]What if the pay for delete letter is rejected?
Like I mentioned earlier, a pay for delete letter is simply a method of negotiation and not a guarantee. So, although you might have sent a very nice letter to them, they can simply ignore or deny your offer.
If that is the case, you have a few options moving forward:
- Continue working on paying off the debt. This is better than having an outstanding debt and risking getting sued for the debt owed.
- Send another pay for delete letter if your debt was moved to a different collection agency.Tthis happens time to time, so you can always try again in that case.
- Wait until the credit reporting limit expires. This simply means that it will fall off your credit and you can continue trying to build your credit from that point.
Also remember that, if your litter is rejected, they might still call and harass you for the outstanding debt. If that’s the case, you can always send them a cease-and-desist letter for them to stop pestering you.
Final thoughts
To close this out, a pay for delete letter isn’t a guaranteed or foolproof way of getting negative marks off of your credit score. It is just a negotiating trick that you can use to help improve your credit score.
Before you send this letter, I always make sure that the debt collection agency that is contacting you has the right to collect it. You can always request that they send you verification that they have the right to collect on it.
Finally, depending on how long the debt has been outstanding, it might be better to Simply wait until the credit reporting time limit has expired. Once that happens, it simply falls off your credit and won’t impact your credit score any longer. Make sure to do your research first.
I really hope this helps, and good luck!
