How To Use A Collection Agent To Repair Your Credit

Your credit rating is determined by your credit report. If you
obtain a loan from a bank, credit card company, or other loan
establishment, your ability to make your payments on time is
reported to a credit reporting agency. Credit reporting
agencies then compile this financial information into a
personalized credit report, the key to a positive – or negative
– credit rating. Any negative notations within your credit
history will haunt you for up to seven years, and could prevent
you from getting another loan.

If you begin to fall behind with your payments to a creditor,
the creditor will attempt to receive payment in a variety of
ways. After a long series of “warnings,” your debt will
eventually be sold to a collection company. The creditor
basically "writes off” the loan, and allows the collection
company to buy it at a drastic discount. The creditor has
pretty much decided that they won’t recover the loan from you
and will sell the debt for sometimes half of its original value
just to end up with something. The creditor then informs the
credit reporting agency, and you are stuck with a black mark on
your credit report which stay there for the next seven years.

One extremely important step to credit repair involves taking
steps to ensure that the creditor doesn’t "write off" of your
debt. As soon as a collection agent contacts you, it is time to
act. Don’t contact the collection agency – contact your creditor
and try to make arrangements with them. Many times, if you can
offer to repay the amount immediately, they can delete the
“collection” flag from your credit history. This is the
quickest method of credit repair.

If you can’t pay the debt all at once, or for some reason your
creditor won’t accept immediate payment in full, you'll have to
deal directly with the collection agency. At this point,
remember that that black mark on your credit score can't get
any blacker since the debt is in collections already, so be
sure to consider your options before acting. Collection agents
are usually aggressive and demanding, implying that will end up
in court if payment is not immediately received, and it can be
tempting to do whatever they say to get them off your back.

But remember this: that collection company probably bought that
debt at about half of the original value, so if you pay a higher
amount than that, you are providing them with a profit. Offer to
pay less than the full immediately. Many times, the collection
agent will accept and want to wrap the situation up as quickly
as possible so they can move on the next debt.

You want to achieve successful credit repair quickly, so try to
pay your creditor directly and have your “collections” negative
mark removed. If your creditor refuses and you must work with
the collection agency, try offering them less than the full
debt amount. Usually anything above half constitutes profit to
a collection agent, so make a full payment your last resort.

About The Author: For more free credit repair information like
this article, please visit:
http://www.Free-Credit-Repair-Advice.com

John V

John C. Vincent/CEO/The Opt-In Magic System
http://Filing4Bankruptcy.blogspot.com
http://LawOfAttractionSite.blogspot.com