Tradeline removed from Credit Report?

Question

What does it mean for a tradeline to be removed from my credit report? Does tradeline mean a collection account?

I have read different things regarding collection accounts being deleted......

1. That it stays on for 7 years even after paying the full balance.

2. I also read somewhere else, "BEFORE you paid off the debt you should have negotiated a "pay for deletion" in writing. That means you pay and they delete your tradeline."

What does the above mean? If I negotiate in writing for a deletion -will it no longer show on my credit report?

I want to purchase a home, but relatives have screwed me and I'm stuck with about six collection accounts totaling about $1300. Anyway, I plan to pay them off shortly.

Thanks for your help and advise.

Manuel

Answer 1

The tradeline is the reported payment history on your account. So, for example, if you open an account in June 2004 and the account was paid off in June 2007, you would have 3 years of a positive trade line. Extending a bit further, if you were 30 days late in December 2005, then your tradeline would be positive but for that one missed payment. And so on.

If you just simply pay a collection account without negotiating with them, you will most likely continue to have the account reported even after payment.

If you negotiate a pay for deletion agreement, you can either get them to agree to remove the account entirely from your credit reports or ask them to report only a positive tradeline (i.e. just report the account as "paid in full never late" or something like that).

Go for deletion of the collection accounts. Just be aware that the original creditor will still report the original accounts as "charged off'. They may fall off in disputes, but you never know.

Answer 2

It means that the tradeline (collection) will not appear on the report anymore - like it never existed.  This is the best option for paying off a collection.

Remember, a paid collection will hurt your FICO score just as bad as an unpaid collection - but until they are removed and/or paid, you will not be able to obtain a mortgage.

Good luck!