Hello! I not only need to pay off all of my overdue credit cards, but I need them to remove all of the negative (past due, deliquent, charge-off) information from my credit report. How do I do this? I am a veteran and I need to utilize my VA Home loan, but my credit score is 411 and it needs to be 620+. I was out of work for 6 months, resulting in all sorts of negative info on my credit reports. I want to try to get it all fixed before the Home-Buyers Credit expires in April... please help!!!
Hello AND welcome You could try to call your credit cards and see if they will agree to a pay for delete. This is where if you agree to pay the debt they would remove it from your report. Usually this works best if the original creditor still owns the debt and has not sold it off to any collection agencies. If they have then the original creditors marks will remain on your credit report and still effect your score.
You should first pull a copy of your credit report. You can then check the accounts which are under collection, which are due, and how many charge-offs are there. Try to pay all these off, after settlements with the creditors and the collection company.
During the settlements you can ask the creditors and the collection agencies to agree to a "Pay for delete" (PFD) agreement. With the PFD, the creditors and the collection agencies will report your accounts as being paid. After settling to pay off the debts, it is better to pay off the dues in full. Paying the charged off accounts improves the credit score the most, as it removes all negative details on the account.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.