If you have some bad marks on your credit how do you pay them off if they are too much money?

Question

I have two bad debts on my credit report that are about $5000 and I want to pay them off to get my credit score up but how do I pay them if I don't have the money? How long does it take for it to be fully removed off of your credit report? I am really trying to increase my score and pay some things off but it seems so hard when you have some balances such as this.

Answer 1

You can always negotiate to pay a lesser amount as payment in full. And if you are dealing with a collection agency, you can also request that they remove their trade lines upon your payment. (original creditors rarely will delete upon payment, but collection agencies will often agree)

How much you might try to negotiate for depends on how old the accounts are, who the accounts are with (original creditor or collector) and if the account is still within the collecting SOL for your state or not

Without knowing how old the accounts are or if they are with the original creditor or with a collection agency, it would take a lot of info to cover all aspects.
With that being said, I'll post a few suggestions but you might want to click on my profile and go to the last link I have listed and do some reading, and ask any questions you have, in the Credit Forum.

No matter who the account is with, always do everything in writing and send everything certified mail return receipt.
If you are dealing with the collection agency, never sign your name to your letters - only print your initials or type your name in.

If it is still with the original creditor, you can request to pay a portion of the account as "payment in full".
Then check your credit reports for any inaccurate information and send a dispute to the CRA's for any inaccurate information you find.

If it is with a collection agency, you should send a debt validation letter. Find out if the amount they claim is the true amount, if they are licensed and/or bonded in your state to collect if your state requires it, if the collecting SOL has passed and that they have a legal right to collect on that account.
(there is also a link in my profile where you can find the collecting SOL for your state)

Look over your reports for any inaccurate reporting. When you receive the green card back from your validation request, send a dispute to the CRA's for the inaccuracies the collection agency is reporting.

Once the collection agency properly validates the account, you can send a pay for delete letter. Requesting that they take a portion of the amount as payment in full and that they will delete anything on your credit reports upon payment.

Make sure that you have a signed agreement to both the deletion and their taking the portion as payment in full. Keep that agreement in a safe place just in case the collection agency decides to violate the agreement and sell the remainder

How much you might request to pay depends on how old or new the account is and if it is still within the collecting SOL or out of it.

If it is past the collecting SOL, you are not legally bound to pay and you have a legal right to tell them the account is past the collecting SOL and no longer collectible.

If you are past the collecting SOL and want to pay, you can usually demand to pay quite a bit less than they are asking. They may take the offer since the only way they can legally be paid on the account is if "you" offer to pay it.

You might click on my profile and do some reading in the sites I've previously mentioned and also in the FDCPA (if you are dealing with a collector) and the FCRA.