Is It Possible To Remove Bad Credit Score By Paying A Sum Of Money?

 A bad credit score means that an individual's creditworthiness is low, or he/she has a bad record for paying loans. But, sometimes, some past experiences can lead to a bad credit score for our creditworthiness. This makes it difficult for an individual to get instant loans in emergency times.

With a bad credit score, the market offers you a bad credit loan that Guaranteed loans for bad credit. Guaranteed loans mean you have to put in some guarantee or collateral for getting the loan. If a lender does not charge any guarantee, a higher interest rate will be charged by the lender. So, Is it possible to remove bad credit scores by paying a sum of money? The answer is yes. You can remove the bad credit score by paying a sum of money to the creditor. This tactic of removing bad credit scores from the credit report is known as "Pay for delete".

What is Pay for Delete?

Pay for delete is an agreement between an individual and the creditor to pay either full or partial outstanding amount to remove derogatory credit information from the credit report. For this process, an individual contacts his creditor to pay a certain amount, and then the creditor contacts the credit bureau to remove derogatory credit information. This derogatory information can be any incorrect information or any comment related to the late payment by an individual.

The legality of Pay for Delete

The Fair Credit Reporting Act ( FCRA) is a governing body for credit laws and regulations. For the Pay for Delete option, FCRA does not prohibit it. But, Pay for Delete cannot use as an option as a jail-free card for bad credit. FCRA states that an individual can force off only the inaccurate and incomplete credit report.

One way to remove a bad credit score from the credit report is to hire a credit repairing firm and pay them for doing this work.

Credit Repairing Firms

Here, credit repairing firms do the exact thing a creditor does in the Pay for Delete option. A credit repairing firm contacts the credit reporting agencies and asks them to remove all the inaccurate and incomplete information. The only difference between a credit repairing firm and the pay for delete option is that you are not paying off any outstanding amount. Here, you pay the fees of the credit repairing firm. Credit repairing firms generally have two types of fees- initial setup fees and monthly service fees. You can choose as per your suitability.

Conclusion

When you a small business and want to start it, you can go for small business start up loans provided by many lenders and even by the government. Otherwise, one should try to maintain a good credit score to tackle unforeseen circumstances.

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