Erase Bad Credit

Posted by admin on September 13th, 2009 at 12:00am

Question:
Can a creditor erase bad credit if I choose to settle with the collection agency?
I currently have a debt with Chase and I believe it was sold to a collection agency and then sold again to another collection agency. This 3rd one issued me a letter yesterday to settle on 264. If I give them this amount who will repair my credit report? The collection agencies never put their negative label on my credit report. Only Chase is on the report and it states charge off since 2006. So could the collection agency fix this or not?

Answers:
The collection agency will only remove or change their own listing, not Chase’s.
You need to obtain an agreement in writing with the collection agency that states they will not report it to the credit bureaus and take away any listings they have already put on there. This is vital as many collection agencies will go ahead and place the negative listing on your credit reports even if you pay them before they do it.
As for that Chase listing, you can attempt to file a dispute with the credit bureaus or writing Chase a letter.

In your effort to erase bad credit, you can consult the Collection agency regarding getting it taken away from your credit. If they refuse to help you, once you since the payment of $264.00 or the previous payment of the $264.00 on the reverse side of the check, that if they cash that check they will be agreeing to remove all negative data in regards to that account from your credit report. If that check is cashed and they do not remove the negative data, you can argue it with the credit bureaus.

Nothing can fix your credit report or erase bad credit, including paying your owings. The thing to look at is if your original credit card is being regularly updated. If it isn’t, you could call the CRA and initiate an investigation, then do the same for the collection agencies. If it’s only $264 and is a representation of only a fraction of the original then it’s probably worth it to make it disappear. Then in six months to a year, call and request an investigation regarding your credit report. Tell them you are not familiar with the account and there’s a great chance it will just be taken off.

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