Put yourself in the position of a collection company. You purchase a debt from a creditor at a discount. You now can report this debt to the credit bureaus as a negative to the consumers credit, lowering their credit scores. Your main motivation is now to try and collect as much as you can on this debt. If your debt is being disputed by the consumer, you’re answering these disputes to the credit bureaus to keep the negative on the report, keeping the scores low. Once the debt is settled (in full or for less the full amount), you move on to the next debt that’s owed and fighting to keep that on a credit report. You now are less motivated to answer a dispute for deletion because you’ve been paid.
I’ve learned this over the years dealing with removing collections from credit reports. In conversations I have with clients, I’ve been told that in the past while using a credit repair company that they were instructed not to settle collections. Not to worry, they’ll be deleted without settlement.
This may sound appealing, but however is not effective for a permanent deletion.
In the small chance that the collection company doesn’t answer the dispute and is removed, there’s a very strong probability that the collection will re-report. This will drop the scores again.
So any time you hear “don’t worry, we’ll delete your collections, don’t pay them” I’d recommend finding another credit repair company.
Part of a successful credit score increase is being prepared for credit repair. This preparation is having the finances to pay your debts. Before I enroll any new client we have this discussion. If they’re not ready I advise them to begin settling their debts, and then come back to us. Paid collections have a higher deletion rate than unpaid, this is what makes our program and clients successful.
For a free credit report review and program outline feel free to contact me direct.
President and Certified Credit Expert