How to Pay on Debt Attached to Credit Reports

Debts listed on a credit report have a large impact on a potential creditor's decision to extend credit to you. If you have unpaid debts on your report, creditors will not have faith that you will pay back the credit you are requesting. Paying on debts attached to your credit report shows potential lenders that you are a responsible borrower and makes them more willing to do business with you.

Instructions

1

Contact Equifax, TransUnion and Experian online, by phone or by mail to obtain a copy of your credit report. Federal law allows you to receive a free report from each credit bureau once a year.

2

Review the information on the reports about your debts to ensure it is accurate. Make note of the amount, last payment dates, account number and creditor information such as the name, mailing address and contact information.

3

Contact the creditors by phone to request the exact amount you owe. If the figure is different from what your records show, request documentation that proves you owe the amount the creditor states. If the figure is in line with your records, tell the creditor you are willing to pay on the debt.

4

Ask the creditor if it is willing to accept a smaller amount if you pay a lump sum or if you can pay off the debt in regular increments. Write down the name of the person to whom you speak and all the figures the creditor gives you but do not agree to any payments over the phone because creditors may deny verbal agreements later on.

5

Purchase a money order for the amount you are paying on the debt. This ensures the payment is secure but does not give the creditor access to your bank account or credit card information, which less scrupulous creditors can use to extract more money than agreed to.

6

Type a letter to each creditor that states your name, the account number and the amount you are agreeing to pay. If the creditor said it was willing to accept a lower amount or a payment plan, give the name of the person to which you spoke, the date you called and the terms of the agreement. Type and sign your name at the bottom. Enclose the money order and mail the letter as certified mail. Request a return receipt so you know when the creditor receives the letter.

7

Purchase a credit report from all three agencies 60 days after you make the payment to ensure the creditor has reported it. If the creditor has not, contact the creditor and request an update to your credit report.