What is a pay for deletion agreement?

Are you looking for a quick and easy option to clean up your credit report? Have you been lucky enough to snag a job in this economy? Have you, against all odds, run into some money and want to make a long term investment? If you answered yes to any of these questions and need a quick and efficient way to improve your credit a pay for delete agreement may be just the thing you have been looking for.
A pay for deletion agreement, is one strategy you can use to remove bad credit records from your credit report. It is a written agreement between you and a creditor or collection agency, in which you agree to pay your debt in full and they, in return, agree to remove a negative listing from your credit report. The pay for deletion agreement, should be an option you consider before negotiating with your creditor for a repayment plan. Steps on how to create your pay for deletion agreement are below:

  1. Obtain a copy of you credit report to evaluate which listings are negative
  2. If a particular creditor is listed in your credit report, before making a step to write a pay for deletion letter, you should first ask for debt validation in the form of a debt validation letter1.
  3. Following validation, you can now write a pay for deletion agreement to the creditor asking for the removal of a negative listing in exchange for paying for debt you owe in full1.
  4. If the creditor agrees to the terms within the letter, you should proceed to follow the terms outlined in the letter and look forward to a cleaner credit report.

You may refer to our sample letters for more information on templates that you may use when drafting letters to your creditors.

Pay for deletion agreements are a great way to get your credit report back on track, because they have the potential to remove damaging listings. If you are one of the lucky people out there and you have a job or you just got hired, the pay for deletion agreement may be suitable for you. Although, in the short run, it seem like a lot of debt to shoulder all at once, the long term benefits of having a cleaner credit report, are well worth it.


Sources:
1http://www.creditmagic.org/repair/pay-for-delete.html
http://www.debtconsolidationcare.com/credit-repair/pay-for-delete.html

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