How to Make Creditors Erase Debt

Creditors are obligated to provide accurate information to the credit bureaus under the Fair Credit Reporting Act (FCRA). Those creditors, however, are not required to actually report that information. This makes it possible for debtors to erase negative entries from their credit report by coming to negotiated settlements with their creditors. Although there are professional credit repair services, it's entirely possible for the average person to successfully conduct debt settlements.

Instructions

1

Organize and make copies of all documentation related to the debts that you would like to delete. This includes the original agreement that established the debt, any bills paid, any written communications with creditors and collections agencies, and all correspondence with credit bureaus related to the debt. It may not be necessary to use it all, but it may prove useful as you go through the negotiation process.

2

Request copies of your credit reports from the three major credit bureaus (Equifax, Experian and TransUnion). Every U.S. citizen is entitled to one free credit report per year from each of the bureaus. If you need more reports than that, you'll need to pay a fee. You can view your reports online or order hard copies. Review your reports for detailed information regarding your debts. You'll also find information about the creditor or collections agency that now possesses that debt. To delete an entry from your credit report, you'll have to deal directly with the creditor that maintains it.

3

Draft a letter requesting a "pay for delete" agreement in return for a cash settlement to the creditor that you would like to delete from your credit report. If the account is current, you will likely have to offer full repayment to get the debt wiped from your report. If you are delinquent on the account by 60 days or more, you will likely be able to settle the debt for much less. Start with an offer of 10 percent of the total amount owed for delinquent debts in return for the deletion of the entry from your report. Request that the entry be deleted within 21 days of the creditor receiving your payment. Keep copies of all agreements with creditors for your records in case you need them.

4

Order new copies of your credit report to ensure that your creditor has fulfilled the agreement. If the creditor fails to do so, dispute the account with the credit bureaus. You may use the online disputation form that each company provides or contact them directly by mail or telephone. If they request it, include a copy of your pay for delete agreement along with bank records indicating that you made the payment when requested.