Whether you’re planning on getting a mortgage or loan, you’ll realize how important your credit score is. Many jobs also check your credit score as part of their application process. Essentially, they use the information to judge your trustworthiness and how you manage your affairs. Having said that, all of us face hardship at some point in our lives. Moreover, it’s perfectly ok to ask for help. After all, that’s why credit repair companies exist. They’ll reassure you by developing a personal strategy for your particular situation as well as by managing the whole process for you, including a pay for delete letter should you need one. 

What is a Pay for Delete Letter 

  • A request to lenders to remove negative items from your credit report 
  • A negotiation tool

In simple terms, a pay for delete letter is a request that you or your credit repair company can send directly to your lender or debt collector. Depending on the situation, the letter allows you to offer to pay for all or a proportion of your debt. In return, you are asking them to remove negative items from your credit report and so save your credit score. Again, all credit repairing companies will advise as to the best structure and offer you can put together. 

This negotiation tool is often suggested by credit repair companies because a pay for delete letter is easy to write and send. Also, if you pay off a good proportion of your debt, you might even be able to negotiate to reduce the overall debt. Lenders prefer money now rather than not receiving it. Furthermore, if credit building companies are successful with a pay for delete letter then it improves your credit score quickly and effectively. 

Does a Pay for Delete Letter Succeed?

  • Case by case 
  • Depends on the FICO Score 

Credit repairing companies are in the best position to analyze your situation. They can then tell you exactly what the potential outcome could be and with what likelihood. Having said that, it’s worth noting that a pay for delete letter holds no guarantee. There have even been cases when debt collectors have not fulfilled their side of the deal and have not removed negative items from a credit report. Basically, a pay for delete letter is not legally binding. Then again, credit counselling companies are more experienced with what language and approach is more likely to work. 

FICO Score 

This is where it starts getting a bit more complicated but it’s worth noting a few things about the FICO Score. To summarize, a FICO Score is a credit score calculated by the Fair Isaac Corporation. Lenders use these scores to determine how risky you are and whether you’ll pay your debt on time. Furthermore, there are many different types of scores and the credit bureaus also use different ones to create your credit score. Then, each credit score is different again depending on what it’s used for, for example, car loans or mortgages. 

Credit counsel companies know all this and will use various approaches and strategies according to the type of credit score being used. So, some credit scores will be positively impacted by a pay for delete letter but others won’t be affected at all and will even be a waste of time. This is why working with credit fix companies is so helpful. They’ll know exactly what to do depending on the context. 

Working with Credit Rebuilding Companies 

The best credit companies work by analyzing your situation to develop a solid strategy. They’ll even offer a full 90-day money-back guarantee if they don’t get you any results. The first step though is for your credit repair company to request your credit report from each of the Credit Bureaus. Then, you can expect the following support from the best credit rebuilding companies:  

  • Draft your pay for delete letter 
  • Dispute wrongly recorded negative items
  • Represent you on legal proceedings 

Before going into the details, it’s worth noting that it’s useful to check your credit repair company registration details and status with the Better Business Bureau before you appoint them. This gives you the reassurance that you’re working with reputable credit repair services.

Draft your pay for delete letter 

As mentioned, credit building companies know the best language and structure for a pay for delete letter. However, they’ll first decide whether it will actually help your case or not. For example, you might need a different approach for each of the credit bureaus. 

Dispute wrongly recorded negative items

According to the Federal Trade Commission, 1 in 5 people have mistakes on at least one of their credit reports. These errors can be anything from the wrong amount of debt to showing old debt that’s no longer applicable. Sometimes they can also happen because of identity theft. Luckily, you can easily dispute errors. Moreover, credit fixing companies know how to prioritize requesting amendments according to the size of impact to your FICO and credit score. 

Represent you on legal proceedings 

In some cases, you might find that your delinquent debt has been sold off to collection agencies who then proceed to sue you. Nevertheless, credit fixing companies know how to represent you and how to deal with all the legal processes. Most of us don’t have the experience or knowledge to handle these things effectively. 

Parting Words on a Pay for Delete Letter and Working with Credit Repair Companies 

So, does a pay for delete letter work? The answer is actually on a case by case scenario. Your best bet is to work with credit building companies who’ll know how to strategize to improve your credit score. The process can be complex so, even though you can do it all yourself, credit help companies can be faster and more efficient. Remember also that you’ll get your money back from the best credit counselling companies if you don’t get anything out of them. So, you actually have nothing to lose and yet, so much to gain.