Pay For Deletion: Does It Work?

A brief breakdown of factors that you should review when considering a pay for delete negotiation.

When desperate to remove negative accounts from your credit profile, the Pay For Deletion method may be a good option.

Before you make the decision to pursue this route, here are 5 items that you should keep in mind:

  1. The Goal. You want to keep in mind that the goal is to get the account removed from your credit profile, NOT just satisfying the debt. Remember to the request the actual removal of the account during negotiation.
  2. Documentation. Get everything in writing, and from all parties involved. This is for accurate record-keeping. Doing so will help you hold creditors accountable and provide proof of the agreed-upon arrangement should the account reappear in the future.
  3. Amount. It's important to remember that Pay for Deletion is a negotiation, meaning, you contribute to the final decision. When negotiating a payment option, you generally want to start at about 25-30% of the total amount owed. Creditors sometimes reply with counter offers, regardless, you have the right to negotiate an updated offer.
  4. Time. Similar to credit bureau disputes, you will want to give creditors about 30 days to reply to your offer. Contingent on an agreement, the negotiation process can be executed within 3 attempts.
  5. No Guarantees. Pay for Deletion is not a solve-all method or instant solution, however, the method can be effective in cases of unpaid debt (excluding student loans, child support, or any other government-issued debts). With this being stated, it's important to understand that a creditor may deny your negotiation attempts. Again, this is a viable second option for remove negative accounts from your credit profile, NOT a guarantee.