If I settle my debt, will they delete them from my credit?

[Dezi]

Okay, I'm ready to start settling my debt. I want to start actually focusing on my credit and being a good consumer so I thought I would start with settling a few collections items I've had on my report for like 2 years or so. But if I get everything settled and paid off will they guarantee that they will delete it from my credit report? If not, what are the positive factors I would get from settling my debt? Will it affect my score at all in a good way? Let me know. Thanx

[Mangie]

Hi Dezi,

Having a account settled does not guarentee that they will remove it; however, once it is paid it is good practice to follow up on how it is reporting on your credit report. If you notice any errors, that gives you the right to dispute, in a lot of cases the dispute will go unanswered by the collection agency and it will than be deleted.

In some cases you can negotiate a payment for deletion and they will agree to remove it, but it is not practice.

Additionally, settling doesn't improve your credit score; however, it does get you on the right path for putting your credit woes behind you and in some cases gives you a better change at a loan if they see that you do not have any unpaid liabilities.