How to Get a Creditor to Mark a Credit Report Paid As Agreed

Creditors want to get their money when you are late paying a debt. They will pursue you for about six months before writing off the money for tax purposes and selling your account to a collection agency. Your credit records are hurt as soon as the payment moves to 30 days delinquent, and the damage worsens as you continue to ignore the bill. You can sometimes undo that harm if the creditor is willing to negotiate in exchange for repayment.

Instructions

1

Evaluate your finances to see if you can realistically pay off the delinquent account. Creditors are more likely to negotiate credit report entries if you can pay them in a lump sum and can afford the whole balance. They might be willing to negotiate repayment rather than charge off the account if you cannot afford the entire amount.

2

Call the creditor and offer to settle the delinquent account. Negotiate for what you can afford, and do not let the agent talk you into agreeing to an unrealistic amount. Otherwise you will end up not sending the payment and the bad information will remain on your credit reports.

3

Tell the creditor that you want the account marked "Paid as Agreed" rather than "Settled" once you agree on a mutually acceptable payoff amount, columnist Steve Bucci advises on the Bankrate.com. A settled delinquent account lowers your credit score.

4

Ask the creditor to send you a letter stating the agreed-on payoff amount and promising to change the credit report entry to "Paid as Agreed" when you send the money. You cannot enforce oral promises, so get written proof of the agreement before you send your settlement payment.

5

Review all three of your credit reports after making your payment to ensure the account status is changed to "Paid as Agreed." Equifax, Experian and TransUnion all give you one free report per year through annualcreditreport.com, according to the Federal Trade Commission.