Daniel Rosen explains why paying collection accounts can hurt your credit score by restarting the date of last activity. Instead, use a pay-for-delete agreement to get the debt removed from your credit report entirely, not just paid off.
Hey, credit heroes. For this month's Tip of the month, I am going to reveal the secret reason why you should never pay collections. But before I get into this hot topic, if you want to get certified in disputing, go to creditherochallenge.com and if you're new to my channel, be sure to subscribe and hit that like button so that you don't miss a thing. Okay, let's dive in. Don't forget, if you have a stubborn collection account that just won't go away with the general disputing tactics, paying it off is never the smart way to go. Okay? Most people say you have to pay it off to make it go away, but I disagree. And I understand why they think that. But the exact opposite is what's true. Even though it seems logical that paying off an old collection account would only help a credit score, the reality is it does more damage than good. See, the older the account is, the less of a negative impact it has on a person's credit score. So when you pay or you settle an old collection account, it doesn't just go away. No, it restarts the time clock and then boom. Not only does it look like a recently paid collection, but it also renews the date of last activity and can end up really hurting the score for a long, long time. That's why debt collectors do their best to convince you that this is a positive solution. Because they know that's the best way to get you to pay it. But they're just in it for the money. Okay? That's all they care about. They purchase the debt for pennies on the dollar store. So anything that they can collect that's above that, that's a win for them. Now, if you own your own credit repair business, you may have already run into clients who are trying to get a home loan or use their credit for something and the lender will require any collection accounts be zeroed out as a condition of the loan. And you may have also run across clients who just want the harassment to end and they are eager to to get everything squared away. Now, when this happens, instead of just settling the account or paying it in full, do this instead. Log into your credit repair cloud account and either go to your letter library or use the letter finder feature to search for the pay per delete letter and then ask your client what they are willing to pay and what they are able to afford to to put this behind them once and for all. Okay? And then just fill in the blanks in the letter and then send it off. And this letter, this amazing letter, it offers either a percentage of or the full amount in exchange for guaranteeing that the account will be deleted entirely. Okay? And that's what you want. Now once you have a signed copy and your client pays the debt collector, they should delete this account right away and it's going to be gone from the credit report like it was never there. And if not, you can always use the agreement as proof and then the Bureau's will do it for you at the end of the day. Always remember, never pay collections, instead remove the account in order to really improve the credit score. And if you want to use our proven and effective methods that we teach in our basic disputing course for verification, disputing accounts, sending warnings, being persistent with reinvestigations, doing interventions, filing complaints, demanding validation, and a ton of other real strategies that actually get you results. Well, for limited time, I am offering that certification course for free inside our 14 day credit hero challenge where I walk you by the hand as you launch your very own credit repair business in just a couple weeks and for less than it costs to take your family to McDonald's for dinner. So to join the challenge and get the basic disputing certification course for free, go to creditherochallenge.com and if you are new to my channel, be sure to subscribe so you don't miss a thing. And remember, be a credit hero and keep changing lives.
Hey everybody, it's Daniel again and really quick. I'd like to invite you to join what I believe is the best thing we have ever created inside the credit repair cloud community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own so you can quit your 9 to 5 and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business. To build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built and it will change your life. So I recommend you do it right now. Stop everything, pause this audio, go online and go to creditherochallenge.com that's creditherochallenge.com and and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now@creditherochallenge.com.
