Deletion letters refer to letters directly from lenders, credit card banks or collectors specifically instructing the credit bureau to delete bad credit from the consumer credit report or, advising the consumer of the credit card bank or collectors commitment to instruct the credit bureau to delete bad credit from the consumer credit report.
Based on our research, consumers seeking to resolve past due or other accounts may consider negotiating those accounts in exchange for a deletion letter versus aggressively seeking a reduction in the balance. Though the immediate savings offered by negotiating accounts is somewhat muted, the long term benefit to obtaining the deletion letter may outweigh the costs. This is particularly true on small balance accounts where you are essentially negotiating for a few hundred dollars. The credit scoring model does not necessarily distinguish between a collection account for $10,000 and one for $500 so it may be in the consumer's best interest to seek deletion letters instead of the reduction in balance.
Deletion letters are important because there is no question that deletion letters obtained directly from lender, bank, credit card bank or collector represent the most effective way to permanently remove bad credit reporting from the credit report and credit bureau history:
- Deletion letters are the only guaranteed way to permanently remove bad credit.
- Deletion letters are the only way to insure services such as rapid re-score are successful.
- Deletion letters, unlike disputes to credit bureaus, remove bad credit in days versus months, or not at all.
We found negotiating for deletion letters on active collection accounts to be very successful.
Because securing deletion letters directly from lenders, credit card banks or collectors is critical and difficult for most consumers, we have included professionals that are expert at obtaining deletion letters from lenders, credit card banks and collectors within our professional services network.
