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Negotiation and Settlement >> Negotiate
your credit rating
While negotiating with your creditor during a debt settlement program
your ultimate motive is to see your account position as, "Paid as
Agreed" or "Account Closed- Paid as Agreed". Any comment
other than this is not a positive sign in the case of a debtor.
Why does a creditor usually agree
to change a listing? In most cases the creditor agrees to change
the listing if the debtor agrees to pay for a new contract on a fresh repayment
scheme. The creditors target to collect funds from the debtors and not by reporting
negative credit information. The creditors realize this requirement on the part
of the debtor and in maximum cases delete all negative listings on your credit
report after settlement of debts. Their main concern is to collect dollars from
you and if you pay them, they will not hesitate to mark you perfect in your credit
rating. On the other hand you can always opt to pay the creditor who is willing
to change his listings if one creditor denies doing so.
Tips
for the smart and advanced negotiators
Unfortunately if your account
has been placed in the hands of a collection agency you will have to face two
negative listings on your credit report both from the collector and your original
creditor. If your original creditor is not interested to have dealings with you
and forwards your case to a collection agency, it seems quite difficult for the
original creditor to wash away your negative listing. But it is not impossible.
In such cases you must request the collection agency to remove the negative listing
completely and persuade your original creditor to make it "Paid as Agreed".
Remember
you have a legal right to request the removal of your negative listing. Sometimes
the collection agency may say that they have no hand in manipulating with the
original creditor which is not totally wrong. However, at such moments you have
to seriously commit the collection agency to pay the money and they in return
will definitely convince the original creditor to clean your negative listing.
Don't forget if you pay then both the collection agency and your original creditor
are benefited. In case you are bound to accept an imperfect credit listing: - Unrated
Account: Sometimes it might so happen that your creditors may not be willing
to delete the negative listing from your file. In such situations request him
to list your account as "unrated". 'Unrated account' means it is neither
positive nor negative. It is neutral and has no negative effect on your credit
report. Make sure there is no late fee associated with the unrated account as
this can have a negative impact even if your listing is "Unrated". Creditors
in all probability will agree to this condition.
- Paid Account:
You can also propose the creditor to make your account as "Paid" rather
than getting rid of it totally. If the listing shows "Paid Charge-off"
or "Paid Repossession" it has a high negative impact. Request the creditor
to just make it "Paid". A "Paid" listing on your credit report
is most unlikely to hamper your credit score.
- Settled Account:
In this case you may request the creditor to simply list the account as "Settled"
rather than deleting the account totally.This listing status should be your last
option because it is somewhat a negative listing.You should only say yes to this
"Settled" status if the other negative listings like "Charge off",
"Repossession", and "Collection" or "Late payments"
are all deleted at the same time.However, one should work hard to delete the "Settled"
status through the credit bureau dispute process.
- Paid
Charge-off or Paid Collection Account: This status is equivalent as showing
the same debt unpaid. It is quite common for an account to be deleted once the
payment is complete.The creditor now has no interest to keep the negative listing
on your report. Thus in most cases it is a good idea to settle the listing status
even if the creditor does not take the initiative to delete the negative listing
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