Raising your credit score 100 points is easier than many people might think, especially if you currently have bad credit.
Keep reading for a testimonial from one of my interns, Kevin, whose method for boosting his credit score over 100 points might surprise you.
Table of Contents
How To Improve Your Credit Score
1. Check Your Credit Score
Most people don’t know their credit score until a time comes when they need it.
Don’t be one of these people!
Good credit scores are your passport to competitive interest rates for mortgages, cars, credit card offers, insurance premiums, and more. Maintaining a high credit score is worth it because it will save you from the money you’d pay in higher interest rates.
Luckily, it’s simple to learn your credit score. I recommend the following companies:
| Company | Data Source | Price |
|---|---|---|
| Experian | FICO | FREE |
| MyFICO | Experian, Transunion, Equifax | $15.95 |
| Credit Sesame | Transunion | FREE |
| Credit Karma | Transunion & Equifax | FREE |
Learn more about each of these companies:
2. Fix Credit Problems
After you know your credit score, step two is: how can we improve it?
The best way to improve your credit score is to review your credit report. The score itself is not personal, every American falls within the same range. However, the credit report, is your unique financial history.
A credit report breaks down the following by weighted importance:
- Payment History (30%)
- Paying your credit card, student loan bills, etc. on time?
- Credit Utilization (30%)
- The ratio between credit available to you and how much of it you use
- Credit Age (15%)
- How long have credit lines been opened? Mortgage, credit cards, etc.
- Account Mix (10%)
- Variety of credit lines
- Credit Inquiries (10%)
- Too many hard inquiries don’t look good, i.e., applying for a bunch of credit cards at once
Where you get your credit report matters, which is why I strongly recommend Experian. You’re not only getting it directly from the source (Experian is one of the three credit reporting companies in America), but it’s free when you create an account!
3. Run Up the Score
Now it’s time to tackle the two factors in your credit report which impact your score the most.
Payment History
Did you know that missing just ONE bill can lower your credit score by 100 points? Ouch. If you’re unable to pay your bills each month, I recommend setting up a budget. This is your path to a higher credit score.
A budget entails writing down all expenses in a given month, and all your sources of income. If the math doesn’t work, then you know what you need to do.
| Resource | How It Can Help | |
|---|---|---|
| YNAB | Get’s you on track with a Budget | Try YNAB Free |
| Tally | Organize & Pay off Credit Cards | Sign-up For Tally |
Credit Utilization
Credit utilization refers to how much of your total credit card limit you use. If you have a $10,000 line of credit with one card, you should never spend more than $3,000. If your limit is low, or if you can’t help but spend the whole limit, I recommend getting another credit card.
It seems counterintuitive, but the goal is to increase your credit limit, without spending more, and this will improve your credit utilization score on your credit report.
Kevin’s Story
As a junior and senior in college, I was always told that applying for a credit card could be my first step in the wrong direction. With a credit card in hand, my parents worried I would spend money I couldn’t pay off and build a lifestyle I couldn’t really afford, rather than learning to save money.
While these are legitimate concerns, I had to let them know I felt as if I had some control over my spending. My response was always the same: “How would I know until I was able to try for myself?”
What I Learned from Being Denied for Credit Cards
When I was finally prepared to get a credit card on my own, none of the banks I applied to would give me a chance.
It went like this: “I am unemployed, have no credit history, and have a couple of thousand dollars in college debt that I will have to start paying on in the next year or two.”
Not exactly a winning pitch to convince someone to give you a line of credit! Two banks denied me, but one banker was kind and shared some info that has helped me raise my credit score over 100 points in the past five months.
First, I should stop trying to apply for credit cards that would get denied. His reasoning was simple: when you apply, they do a hard credit check which, in turn, can lower your credit score even more.
His second piece of advice was to get a secured credit card.
How a Secured Credit Card Works
He told me that no major bank was going to accept my credit application, but there was actually an alternative option available – one which was especially perfect for those in my exact situation: to sign up for what is called a secured credit card.
While the terms for these are horribly one-sided in favor of the lender, I assure you it is a small price to pay for the result you receive after only a few months.
With secured credit cards, you give the lender a cash deposit up front, and that cash deposit is typically equal to your credit limit.
This process truly confused me at first, since I thought the deposit was money I could actually spend. What I learned, however, is that the deposit is there in case I default.
I couldn’t spend the deposit itself, but I would get it back if I kept my account in good standing until I closed the card.
After you make your deposit, secured cards are also treated just like traditional credit cards. Your secured card will typically look and act just like a regular credit card, so no one will know it is secured.
There is also an annual fee associated with most secured credit cards, but I felt it was a small price to pay for the opportunity to build some credit history.
How To Maximize the Benefits of Your Secured Credit Card
When I first checked my credit score with MyFICO in March of 2011, it was sitting at 621.
I set up my new secured credit card with a credit limit of $1,100. The credit limit should be a function of what cash you have, and also what you plan on using the credit card for.
According to many bankers and friends I talked to, you should try to run a 75% utilization rate on your credit card to maximize your potential to raise your credit score.
So, if you only spend around $300 a month, you should give your secured credit card a $500 down payment so that you are utilizing your credit rather than having a $1,000 dollar limit and only spending $300.
My expenditures were approximately $700 dollars a month so the $1,100 dollar limit fit my needs.
How I Raised My Credit Score Over 100 Points
Raising my credit score with a secured card took some disciplined, conscientious spending.
Here are the rules I followed to maximize the benefits of my secured credit card.
- Spend what you have: After I received my secured card and started spending, I made sure that I would only spend money I already had or would receive, before the next pay period.
- Pay often: I ended up paying off my credit card roughly four times a month to ensure I never carried a balance from one month to the next.
- Know your limits: I would never let my credit limit exceed $800, and I would never pay it off if the card balance was under $300 unless the pay period was coming to an end.
- Make purchases: I would put every penny of my spending on the credit card – from the smallest expenses such as a drink from the gas station to major purchases such as airline tickets or hotel rooms.
- Be consistent: I repeated this process for 5 months to establish a credit history of regular use and always paying on time.
What My Improved Credit Score Allowed Me To Do
In August of 2011, I had to purchase a car so I could switch jobs.
When I filled out the credit application to see if I qualified for lower financing rates, my credit score came back as 731.
In other words, I raised my credit score from 621 to 731 in just five months!
This is a very big deal because, at 621, I would have been denied a loan for the car, or would have had an interest rate that exceeded 9% on the auto loan.
Since I chose to get a secured credit card, I was able to take the car loan on my own and qualify for the low rate of 3.99% financing.
The difference in the loan between the two interest rates would be $750 over the life of the loan, far surpassing the card’s annual fee, and the opportunity cost of my secured credit card holding my $1,100 for five months.
Why You Should Let Your Kids Get a Secured Credit Card
To all of the parents out there who worry about letting their college kid apply for a credit card, I can tell you it worked for me in five months and will change my financial future for many years to come.
Secured credit cards offer a foolproof way to raise your credit score when it is not possible through a regular bank credit card.
It’s a safe way to earn credit if you do not trust your kid to spend responsibly.
The worst that can happen with a secured card is that you cannot pay your bill, your company closes out the account, and they pay off your credit with the money you already have on deposit.
My secured card worked perfectly for me and I have now been accepted for a credit card with a major bank.
How to Make a Secured Credit Card Work For You
Here’s the truth: If you have a low credit score and cannot qualify for traditional credit, a secured credit card is the best way to build a credit profile that will last.
Below are the steps to moving your credit score in the right direction using a secured credit card:
Step 1. Learn Your Current Credit Score
Just as was emphasized above, knowing your credit score is key. Any one of these places listed below will get you either your exact credit score (if you pay) or close enough (the free versions).
| Company | Cost | |
|---|---|---|
| Credit Karma | FREE | Get Started |
| Credit Sesame | FREE | Get Started |
| FreeScore360 | FREE | Get Started |
| CreditID123 | FREE | Get Started |
Step 2. Research secured credit cards
Getting a secured credit card is one of the best and fastest ways to improve your credit score. Petal Visa Credit Card is one of the only credit cards you can get without credit history or an upfront deposit and the current APR is overall pretty good for a secured credit card ranging from 14.49% – 25.49%.
With responsible spending and on-time payments, you can grow your credit score. Petal reports to all three major bureaus–TransUnion, Experian, and Equifax.
Step 3. Read the terms and conditions, then sign up for the right card
Once you find a card that meets your needs, you need to read through all the fine print to make sure you understand all fees involved with your new secured card.
When you feel comfortable with the details, simply click on the “apply now” sign and fill out all of the required information.
Step 4. Put down a cash deposit you can afford
One of the reasons I love the Petal Visa Credit Card (and no, I don’t work for them!) is because they don’t require a cash deposit.
Most secured credit cards do. If you find a card you love that requires a cash deposit, my advice is to put down only what you can afford. Don’t overextend yourself.
Step 5. Use your secured credit card sparingly at first
As you get used to using credit, you’ll want to use your card sparingly at first.
Don’t rush in and begin charging items until you get a grasp on what you can truly pay back.
You don’t want to end up with a revolving balance you can’t afford to pay off every month, and you definitely don’t want to pay interest on your purchases!
Step 6. Monitor your bill closely, and pay your secured card off frequently
To make sure you’re utilizing your new secured credit card, you’ll want to keep close tabs on your growing bill.
If your card offers online account management, this task should be fairly easy. If it doesn’t, you may need to keep track of your purchases and charges manually.
Either way, this step is crucial since staying debt-free is the best way to keep your credit in tip-top shape.
In Summary: Tips To Improve Your Credit Score
- Signup for Credit Karma, an easy-to-use and transparent one-stop shop: get your credit score, credit report, and credit monitoring.
- Download Tally, a credit card consolidation app that makes it easy to stay on top of your credit cards. Scan your cards and get a line of credit as well as manage payments.
- Signup for Experian Boost to include your cell phone and utility payments into the calculation of your credit score. This is huge because Experian won’t count missed bills, only positive history payments.
- Get a Petal Visa Credit Card. All the perks and rewards of a credit card, except no fees and catered towards improving your credit score.
The Bottom Line
While Kevin’s story is absolutely amazing, it isn’t all that unique. In the real world, secured credit cards are a valuable tool that can be used to build your credit when you otherwise couldn’t.
Whether you like it or not, your credit score is important.
If you ever hope to take out a mortgage, borrow money for a car as Kevin did, or borrow funds to start a new business, you’ll need a good or decent credit score to qualify for the best rates.
While imperfect, secured credit cards offer the opportunity to improve your credit and your life.
If you are ready to improve your credit and think a secured card could help, don’t delay. Research your options and sign up today.
I have just managed at age 61 (my husband is 66) to pay my home off in full. We have also managed to pay off $50,000 in credit card debt. We have paid off our vehicles, so all we owe now is a remaining $50,000 in credit card debt which we intend to pay off in full next year. At the moment, we are currently bringing in approximately $100,000. We plan on paying off a remaining $50,000 in credit card debit next year and then we will be totally debt free, Thank God. Right now we are sitting at credit scores of 695 and 710. After reading that you are actually penalized for paying off credit cards, cars, and mortgages early, I am convinced that the credit rating system is definitely one of the dumbest things ever created. If I were considering someone for a loan and they paid off cars, their home, and a huge chunk of their credit card debt, I would be very impressed and eager to offer that customer incentives to do business with me. If having a stupid card that I keep a $300 balance off and consistently pay $5.00 or $10.00 on it on time, I just don’t think that is as impressive as a customer who is almost debt free. Whoever thought up the rules and regulations that determine a good credit score was out to lunch. It’s just ridiculous. If paying off big cost items like automobiles and homes do not make the needle move that much on your credit score, then it’s just absolutely inane. People take an entire lifetime to pay off their homes. I think it’s a pretty big deal. The fact that the rules that run the credit scores barely acknowledge an accomplishment of that magnitude just proves to me that credit scores are bogus and are looking at irrelevant information to determine “good” or “excellent” scores. I guess I will get a secured card and pay $10.00 a month and bring my credit score up to 800.
Great tips! Very similar to what my credit teacher taught me. Although his methods are the fastest I ever seen. It would boost your credit over 200 points in weeks. Trust me, Data scientist and revolutionary hacker Royalblade is the deal. Telegram, @royalblade.
And the shit is every time you check your credit the score will go down.
Not true for a “soft pull”
Is there such a thing as the 800 credit club.also where do you read or find them
ya,
our cardratings.com
seems to be worthless, put in bad credit says nothing available.
Rich
I have paid and paid on things that was on my credit report. Experian shows my credit to b652 the bank pull my credit and it showed to be 6:11 I don’t understand how credit works I guess cuz I haven’t been late in 10 years I haven’t been late I know in three or four years on my car payments credit cards or nothing in my credit score still goes to the same or just goes down quiet
Hi Tim – One of the problems with credit scores is that you have at least a dozen. Exactly what your score will be will depend on the source. So maybe when you check your score and got 652 it was from one source. But the bank used a different source, and got a different number. Unfortunately, that’s the way the credit scoring system works. There can be large variations from one score to another.
will paying off old debt such as old cable and cell phone bills help improve your credit score. My current credit score is 530.
One of the ways and quick method of repairing your credit score will be by using the services of a programmer as they do add trade-line and remove derogatory items which in turn will boost your score drastically . I am saying this Because I also had the same issue. You can go on CK forum and you will find SniffingnoseATrepairmanDOTcom there as they had 89% reviews on credit score repair boost .
Great advice. I’m in the same situation. I’ll try this route. Additionally, I do use credit Karma.
You are wrong Capital one does charge a annual fee and if it goes over your limit a 29.00 fee is charged
You can always monitor your official 3-bureau FICO Scores from myfico (https://www1.myfico.com/homepage) to ensure you check the FICO Scores that lenders will use in the US.
Hi Judy – Thanks for that information. I wasn’t aware MyFICO provides your scores, at least not for free. Also, lenders don’t always provide the specific FICO score they use. It may be different from the one the give out for free.
I have a collection item(disputed) two years old and i spoke to collection guy for PFD. They denied and they are saying they can change it paid in FULL on payment. My current score is 680 and i’m in the market for mortgage loan in next 2 months. I know paying collection does not change the score. Please suggest me ways to increase score to 750 (70 points). This will help me to get better mortgage rates.
Thanks
CVA
CVA – You’ll be able to get a mortgage with a credit score of 680, but the rate will be a bit higher than if you’re score was well above 700, particularly if you will have to pay private mortgage insurance. Depending on the size of the collection, paying it off should boost you a few points. A paid collection is always better than an open one. Otherwise follow some of the suggestions in this article. It’ll take a few months, but it will be worth it.
A great article! Another little trick. If you have the discipline to leave your credit cards at home, is to call your card company and request a credit increase. This will reduce your ratios, giving you a nice little bump in score. Another way is to reduce your balances. http://www.savethesnowball.com, is a nifty little app that takes the Spare Change from your everyday purchases and applies is to your debt with the highest interest rate. Inside our app you can estimate your savings by applying your Spare Change. It’s a great tool for credit card debt, student loans, auto loans and mortgages.
I don’t know anything about Save the Snowball, but anything that pays down debt is worth looking into. Whether you raise your credit limit or pay down debt, it should help with your credit utilization ratio. I personally prefer paying down debt, since raising your credit limit is really a cosmetic solution, and one that doesn’t reduce your debt level.
Another thing which students can do, is to be an authorized user on their parents’ accounts. So that the parents can monitor their spending. This may sound a bit odd to the teens but this can help them to build a good credit from the beginning. This process is called piggybacking. In piggybacking if the parent has a good credit score, the child’s credit score gets a boost as he/she is an authorised user.
Thanks Tiara, that’s an excellent strategy!
Nice write up, my credit score was 510 a friend recommended me to 1data Chris few weeks later my score shot 760 it sounds fake but I can assure you it’s magical thier services are awsome [email protected] will be thankful for my referal.
Hi Jacobs – I’d be very careful working with anyone who can raise your score 250 points in a few weeks, or even promise to. That has scam written all over it. The services that claim to be able to do that use different tricks, like having you dispute all of your bad credit. That suspends your credit for a few weeks while they investigate, which temporarily raises your score. But after a few weeks are up, your score plummets again as the negative information comes back on your report. Then you’re out the fee you paid, and you still have bad credit.
I have confirmed thier services. I couldn’t believe how they helped me increase my scores. They are legit guys.
I used them few months ago and nothing happens, I don’t know how on earth they get to do it.
They rescued us from eviction, they are life saver.
I’m 23 & currently have no credit, no collections either. Would like to know whats the best & fastest way for me to build my credit ?
Hi Heather – Check with a bank or credit union to see if they offer “credit builder accounts”. Basically, they give you a loan of $500 to $1,000 that gets deposited into a savings account. The monthly payments are deducted from the savings to pay the loan. All you have to pay out of pocket is the interest on the loan. The term can range from 12 to 24 months. Since you’re paying by automatic draft, you never have to worry about the payments, and your credit rating is then reported to the credit bureaus. It’s a painfree/effort-free way to build your credit.
Sounds good. I have a low credit score. Do I qualify?
Hi Michelle – You’ll have to check with whatever company you apply to a loan for.
i am wondering i currently have a bunch of store cards and a few major cards my utilization is pretty high..my payments are perfect never missed and never late either its just my utilization is killing me!! my score has gotten so low,, and i have recently gotten a brand new car whch i pay on tme and never late.. my question is should i get a secured card will this help me at all? im just woried about my score i have become obsessed with it! i also always pay overmy minimum balance too! what can i do? Thank you
Hi Jessy-lynn – I’d only go the secured card route if you can’t get unsecured cards. When you have high credit utilization you should stop further borrowing and work to pay down your cards. You can also apply for new credit lines but NOT USE the credit. That will lower your credit utilization. However, that strategy won’t fix the basic problem, which is that you owe too much. So either way, the ultimate solution is to concentrate on paying down your cards.
Debt snowball. It works.
My score has hovered around 756-760 for about a year now. I never charge too much, and always pay my balance in complete before the next cycle. So I basically carry a 0 balance. I have no negative marks, no late payments, no fees for balance carries…..
I have one credit card for that has a credit line of 3,500.
I do have a student loan that I’m paying on for 10,000. Is this keeping my credit score from going up? According to Credit Sesame my individual marks are A on payment history, A on credit usage, B on credit age, C on account mix and A on credit inquiries. So obviously my credit age needs to go up and apparently the fact that I don’t have 4 different kinds of credit hurts me.
I guess I’m asking is having the loan keeping my score from going up quicker? How can I get my score in the 800’s?
Hi Heather – First, your credit score is excellent. It’s harder to raise your score when it’s already that high. All the easy solutions don’t apply. The student loan debt probably isn’t hurting you, especially since it’s an installment debt. The credit age issue will go away with time. The only thing you can work on, and what will make the biggest improvement is with your account mix. The credit bureaus like a mix of credit that includes a blend of both revolving and installment loans, like mortgages or car loans. You might help your score if you get a car loan, but I wouldn’t advise that if it’s just to increase your credit score. You already have an excellent score, so I’d work on paying your student loan down, and letting time pass to “age” your credit a bit.
I recently got approved for. Citi bank secured card with a deposit of $200 I was hoping that my credit score would increase due to me purchasing credit for the first time, does the secured card help my score just by reporting a $200 limit .
Hello,
First of all, thank you Jeff, for the info you are providing!
I’d like to know if it is best to utilize only up to 30% of a secured credit card? And, is it best to pay off the balance multiple times per month as some people have said?
Thank You!
Sandy
Hi Sandy – I would think that the credit utilization applies to a secured card as well. It may also depend on how the creditor reports the arrangement. Get a copy of your credit report and see if it varies compared to unsecured credit cards. As to the multiple balance payoffs per month, I’ve not heard that, and it sounds like overkill. The credit bureaus are usually only updating your credit once per month, so they miss the multiple payoffs.
Keep your utilization 30%or below.
Hey Jeff, how about credit builder loans? Credit unions are usually flexible and offer more options. Such loans can improve your credit score and get you better rates and financial products.
That’s an excellent recommendation Peter. Credit unions offer those arrangements, and they’re an excellent way to either build a credit score (for a new borrower) or to improve on existing credit. Basically, you borrow $500 or $1,000, which is put into a checking or savings account. Loan payments are then automatically deducted from the account to pay the scheduled payments. It enables you to make on time loan payments without making any effort.
You do have to deposit some extra money into the account to cover interest on the loan, but it isn’t much.
question, is it good to put your paycheck on your card and pay your bills that way? want to know how this will reflect on you?
Sounds complicated Gwen, but I have heard of it. I don’t see how it would improve your credit score though.
I have a credit score roughly at 530 and I want to get a secured card but I have things on my report that I don’t have money to pay them right now, by getting a secured card will that raise my score any before I start paying the items on my report
Hi Jana – Is the company behind the secured card requiring you to payoff items on your credit report? If not, go ahead and get the card, then work on paying off the open items later, when you have the money available.
How fair is it your credit score drops 100+ points after an inquiry? If I’m trying to rebuild my credit, why does an inquiry or anything of that nature is allowed to drop your credit score? Things like this make me not want to deal with credit.
Hi Rachel – It’s EXTREMELY unlikely that the inquiry dropped your score by 100 points, as they aren’t that major a factor. There’s probably something else on your report that changed that’s pulling it down that low. 100 points is usually the result of something major, like a bankruptcy or a series of late payments. Check your report closely, and see where there might be a problem.
Hmm okk, It was credit karma that alerted me about that and it was the only inquiry that shown recently on my report. 🙁 Thank You for the information Jeff.
I have a 90 day late payment on my student loans. It wasn’t a mistake in reporting and just a long story short, I wasn’t aware of the effects it would have on my credit score. Now, I am looking to improve my credit score but not even able to get approved for a secured credit card! How long until I see some kind of improvement in my score without a secured credit card? All other bills are paid on time and current.
I recently got my credit score checked and ever since I have been stressed out. My score is 479. I didn’t understand credit entirely when I got my first few cards. I failed to make payments on time, I closed two cards out shortly after opening them, and my third card was sent to collections. I’m trying to rebuild my credit. I just don’t know where to start. I currently only have a balance on one of my cards, but that card has been closed on me. How am I supposed to improve my credit if I no longer have a cards and such a low score that won’t get me approved for another card?
Pay the collections off first or they will probably harass you til you do. Then get a secured credit card. Open Sky CC is a good credit card to get, they say they don’t check your credit score so every one is approved, which is also one less hard pull on your report. The annual fee is only 29$ as well. After you get a secured card only use it for tiny purchases and only allow it to report less than 10% of its limit to the credit bureaus. Also if you know anyone in your family that has good credit you can talk to them about adding you as an authorized user solely based on the benefits of credit, not being able to spend their money.
I have a credit card but I am behind on the payments, would it help to pay it completely off or just to start back making payments before it is too late.
I’ve been reading one review after another on raising credit scores. And each of them have confidently stated that the BEST utilization of the credit limit had been between 10%-30%-50% and now I see 75% here. Is there a definitive statement from, say, Equifax or someone to say that it’s 75%? Forbes said 10% is best, even venturing up to 30% is fine. I read 50% on some comments on another post, elsewhere.
If you’re paying your balance in full every month like he was, multiple times so I see, his utilization was probably reporting at much less than 75%. All reputable sources say to stay at or below 30%.
Doing can be “tricky” also. You must be informed on the date your credit card statement closes. The balance at this time will be what is reported to the bureaus. So even if you pay the balance in full every month (or better yet, multiple payoffs during the billing period), if there is a balance at the close of the statement this will impact your rate of utilization. Bottomline: learn as much as you can about when the billing period begins and ends regardless of the due date!
DO NOT LISTEN TO THIS GUY!!!! DO NOT RUN UP YOUR UTILIZATION RATE!!!! I WORK AT A BANK AND THAT’S THE ONE OF THE FASTEST WAYS TO RUIN YOUR CREDIT!!!! KEEP YOUR BALANCES LOW!!!!!!
If I have debt (total of $1000) and I get a secured card before j pay thisnoff, will the secured card help my credit? Or do I need to pay off my debt first before my score will increase?
Quick question if I may – ( to assure I understand ) If your credit card is $500 you should spend rougly $200 on it monthly and pay it down to zero each time?!
Thank you!
I have a personal question. My teenage son has had a lot of personal problems, dropped out of college, and lost all his financial aid and is even uneligible for a federal student loan (just some background). He has a bill at school and was turned over to a collection agency. How will this affect his credit? He has not needed a credit rating yet – as he had a full ride to school and paid cash for his truck. He will be 20 soon. Thank you for the advice.
Chris: He should pay off the bill in collections asap. It will be on his credit report for the next 5-7 yrs, depending what state he lives in. Anything in collections will bring your credit down, but my understanding is if he pays it off he can ask the collection agency to take it off his credit report (there’s 3 – experian, transunion, and equifax). They may not take it off though.
Thank you. He is unable to pay it at this time. However, we have discovered he never got a bill with a due date and on his online statement at the college, he has no payments due until November 2013. So hopefully, he can set up a payment plan by then (or have it paid off) and it can be taken off his record then, b/c it looks like it was a mistake with the college.
No need to even do that. EVEN if you pay them, they wont take it off their credit.
you can use the Fair Credit Reporting act, and invalidate anything in collections. just use an attorney or go through Camden Loan Services – they do a great job with that.
Nestor Russell – Loan Officer [email protected]
The collection agency will take it off your report. They took it off of mine. You can also write a pay for delete letter.
Can you share with me the pay for delete letter. I have several paid off collection accounts that I would love to have deleted. Not sure how likely that is since I already paid them to 0.
Hi Marilyn – There’s no standard letter. In fact, standard letters are not recommended because “form letters” are often ignored by creditors. Better to write a custom letter that addresses the specifics of the collection paid. Stay with a simple basic format, such as “Collection X was paid off on XX/XX/XXX, enclosed is the documentation to support the payoff, please reflect the paid collection in your records and with the credit bureaus.” Anything close to that should get the job done.
The ways that I avoid creditor harassment is to pay my bills one month ahead of time so they won’t be calling my phone every five minutes.