What Percentage of Debt is Typically Accepted in a Credit Card Settlement

What Percentage of Debt is Typically Accepted in a Credit Card Settlement?

One of the most common questions people have as they investigate settlement options is how much they will pay on each unsecured loan. There is no set answer but there are expected percentages. There are several factors that play into settlement percentages.

How Much Debt Do You Owe?

To qualify for Pacific Debt’s settlement program, you generally need to have in excess of $10,000 in unsecured debt, particularly credit card debt.

Once enrolled in Pacific Debt’s settlement program, you make monthly payments into a dedicated account. If you make these payments, our statistics indicate that you may pay off your debt at between 65% and 85% (including fees) over 24 to 48 months. That means that on a $10,000 debt, you can expect to pay $6,500 to $8,500. However, each situation is unique. Settlement percentages vary based on the individual creditor, your hardship, and available funds.

Who is the Creditor?

Every creditor is different and has different policies. How aggressive they are may depend on your state of residence, homeownership status, and employment.

Pacific Debt has an excellent track record in working with most creditors in many states. We will do our best to get you the best settlement possible. However, for more aggressive creditors, settlement percentages may be higher or they may be less inclined to accept settlement funds in installment payments.

Contact us today to enroll into our debt settlement program. Our debt experts can explain to you exactly how our program works.

What is Your Payment History?

Your payment history has a big effect on your credit score. It also has an effect on how willing the creditor will be to settle. The more current you are, the less willing the creditor will be to settle.

In order to settle, you must be behind on all or most of your unsecured debts over $500. Otherwise, the creditor will see that you are paying off loans at 100% plus interest and may not be willing to settle.

Unfortunately, being behind on payments has a big effect on your credit score. Entering into a settlement program may also damage your credit score initially, as accounts go into delinquency but you may begin to see improvements as you pay off your debt.

How Old is your Debt?

As your debt ages, the creditor is less interested in holding it. They will “charge off” the debt after 180 to 210 days by selling or assigning it to a debt collector. In general, you’ll have more success in settling once the debt has gone to collections.

As you approach the 180-day mark, the creditor may be willing to settle, especially if you have a lump sum to pay off the debt.

Once the debt has gone into collections, you will most likely be eligible for a settlement. Creditors may be more lenient on settlement terms.

Depending on your state’s statute of limitations, once your debt ages past the cutoff, it is no longer collectible. Most states have a statute of limitations between 3 and 10 years.

Pacific Debt’s Proven Results

The following percentages reflect our settlement successes from our Debt Relief Program. Remember that each situation is unique and percentages vary. We have long-term working relationships with all of the creditors listed below. As a result, you’ll most likely get a better settlement when using Pacific Debt. These 2018 YTD percentages are based on the current balance at the time of settlement.

Creditor Name Settlement Percentage
Bank of America 47%
Capital One 51%  Read actual case study here
Chase 33%  Read actual case study here
Citibank 46%
Discover 59%
Kohl’s 47%
Lending Club 46%
Nordstroms 45%  Read actual case study here
Paypal 46%
PNC Bank 31%
Synchrony Bank 51%
USAA $45%
Wells Fargo 45%

Real People, Real Settlements

Kelvin, a San Diego insurance worker, owed $82,120.59 to seven different credit cards. Because he works on commission, his income varies every month. With Pacific Debt’s help, Kelvin was able to settle all seven accounts for $28,823.26. His payoff averaged 35% overall seven, with the highest percentage at 50%.

Filippo, from Los Angeles, recently divorced. He wanted to use the proceeds from the sale of the marriage home to settle two debts totaling $21,422.12. Pacific Debt helped him settle for $9,482.00 or an average 44% payoff. His highest percentage payoff was 64%.

Leslee, a self-employed San Franciscan, was out of work for medical issues. She owed $9,840.54 on two debts. After working with Pacific Debt. she was able to settle both debts for 60% or $5,922.55. The highest payoff was 80%.

Each case is unique and we do not guarantee results.

Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.



Clients who make all their monthly program deposits pay approximately 50% of their enrolled balance before fees, or 65% to 85% including fees, over 24 to 48 months (some programs lengths can go higher).

Not all clients are able to complete our program for various reasons, including their ability to save sufficient funds.

Our estimates are based on prior results, which will vary depending on your specific circumstances.

We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time.

We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services.

Our service is not available in all states and our fees may vary from state to state.

Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution.

Read and understand all program materials prior to enrollment.

The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest.

Debt Collector Scare Tatics

Common Myths and Scare Tactics Used By Debt Collectors

DISCLAIMER: We are not lawyers and are not giving legal advice. We strongly recommend speaking to a professional attorney.

If you’ve been contacted by a debt collector, you may hear all sorts of claims. If this is your first time, you may not understand your rights – and yes, debtors do have rights! Check out these myths and scare tactics used by debt collectors so you can handle these annoying contacts.

Know Your Debt Collector

Myth – Believe Everything You Are Told!

Debt collectors may be wrong – always double check your records make sure you owe the debt. Dishonest collectors may try to collect an old, canceled, or paid off debt. The debt collector is required by law to send you a letter within five days with the creditor’s name, the amount owed, and informing you that you can dispute the debt.

Insist that they send you a debt validation before you pay anything!

Once you receive the debt validation letter, you have thirty days to dispute the debt in writing. The debt collector cannot contact you within those thirty days.

Myth – You Can Pay the Original Creditor

Nope. In most cases, the original creditor and the debt collection company have an agreement preventing the original creditor from accepting payment. In some cases, your debt has been sold to a collections agency.

Myth – All Debt Collectors Work for Real Companies

The debt collector could be a scammer! Often, these people will go after debts that are past the statute of limitations or that are not valid. Get a name, address and phone number and check them out before doing anything.

Always ask for a debt validation before you do anything!

If you are being harassed by creditors and need debt relief, contact Pacific Debt immediately to receive your FREE CONSULTATION.

Find out more details about our Debt Relief Program.

Know Your Debt

Myth – Ignoring a Debt Makes It Go Away

Yes and no. If you can ignore the debt for your state’s statute of limitations, it will go away. However, the damage to you and your credit score will be longer lasting. The unpaid debt will affect your debt score for up to seven years. In addition, the record of your debt stays with the creditor and will keep you from getting another account with the creditor.

Myth – An Old Bill is Not Collectible

This is true…but a debt collector may “re-age” the debt or sue you anyway, hoping you don’t have your records proving the age of the debt, or you won’t bother to read your mail. Always keep debt records. Don’t depend on anyone to keep accurate records for you.

Myth – Small Debts Don’t Get Sent to Collections

Sure they do. It is up to the original creditor whether or not to send your debt to collections.

Myth – You are Responsible for Family Debt

If you are not a co-signer, you are not responsible for the debt.

Debt is not inheritable. When a loved one dies, any debt will be paid first out of the estate. The creditors must be notified about the death and have a limited time to request payment from the estate. If there is no money to pay debts, there is no money to pay them. As long as you are not a co-signer, you are not responsible for the debt.

Myth – Your Debt will Live Forever

States have statutes of limitation for how long your debt is active. These range from three to ten years, depending on the state and the type of debt. A debt collector cannot take you to court for a debt that is older than the statute of limitations.

Depending on your state, a creditor may file a lawsuit against you in
1) your state of residence
2) the state where the creditor is based
3) the state you lived in when you opened the account
4) the state where the outstanding charges were made.

Making a payment or agreeing to a payment plan will restart the statute of limitation deadlines.

Myth – Pay Now and Your Credit Won’t Be Affected

Your credit is damaged already. They can’t take your possessions (unless it is something like a car or your house). If you are in collections, your credit is already damaged.

Read real reviews from our customers and find out how Pacific Debt helped settle their debt.

Response to Debt Collectors

Myth – A Cease and Desist Letter Makes Debt Go Away

It is your right to send a cease and desist letter to the debt collection agency. By law, they must stop contacting you. HOWEVER, that doesn’t mean the debt has gone away. Your debt is still listed on your credit report, negatively affecting your credit score.

The debt collection agency may assign your debt to a new company, invalidating your cease and desist letter.

Myth – You Can Tell a Debt Collector to Stop Calling You

Sort of true – you can if they are calling you at work or at an inconvenient time. You must request in writing that they stop calling you.

A debt collector can only call you between 8 a.m. and 9 p.m. in your time zone. If they call outside this time, tell them they are violating the law and then write down the time and date (and caller’s name). This is a violation of the federal Fair Debt Collection Practices Act (FDCPA).

Myth – Debt Collectors Can Call Your Relatives or Workplace

True and false. If you don’t keep creditors updated with address changes, the debt collector can call your relatives to get your new address. However, they can’t give relatives information about your debt. Keep in mind that they may try to guilt your relatives into paying your debt. This is not legal either.

The debt collector can call you at work unless you tell them not to. They cannot discuss your case with your co-workers or boss. To stop calls at work, send a certified return receipt requested letter telling them not to call you at work. Keep the receipt and a copy of the letter as proof.

Myth – You Have to Give Them Personal Information

Do not give them your bank account number, references, Social Security Number, or work information. They tell you they want to set up a financial statement. What they are really doing is collecting information to find you. DO NOT give them that information.

Making Payments

Myth – Partial Payments Make Them Stop Calling

Sure, until you are delinquent again. If you set up and keep to a payment plan, the calls will stop.

Never ever admit that the debt is yours! That can affect the statute of limitations.

Myth – Paying the Debt Collector Improves Your Credit Score

When you pay off your debt, the debt collector must notify the credit reporting agency that you have paid it. However, it will show on your credit report (up to seven years) that you went to collections. Your credit score will improve but not immediately.

Myth – You Must Pay the Full Amount

Not necessarily. That is what the debt collector and original creditor want, but you may be able to “settle” or decrease the amount you owe. Discuss payment plans or other options with the debt collector and GET IT IN WRITING. Try negotiating at the end of the month as your collector has monthly goals and may be more amenable to negotiation.  Pacific Debt may be able to help you with debt settlement.

Myth – Settlement Will Help Your Credit Score Immediately

Not immediately. Paying off your debt will help your credit score in the long run.

Myth – Making Payments Restarts the Credit Report Time Limit

No. The credit report listing is based on your original delinquency date. It generally stays on your credit report for up to seven years.

A payment does restart the statute of limitations time limit.

Myth – You Must Make a Big Down Payment Immediately

Your debt collector is probably working on commission. Your large down payment is part of that commission. You do not have to make a large down payment!   

You may also be threatened with awful outcomes if not paid within a certain amount of time. It is a tactic to get you to pay quickly. Threats are not legal!

Know Your Rights

Myth – You Can Go to Jail for Having Debts

No. This is not legal and not true. If the debt collector makes a threat, you have grounds for extortion.

However, you can go to jail in some states for overdue child support or for failure to appear in court if summoned to a hearing about your debt (see summons letter)

Myth – Debt Collectors Can Garnish Your Wages

This is false. Your wages can only be garnished via a court order or if the debt is a federal student loan. Even then, the amount garnished is limited to 25% by law.

Myth – Business Debts are Protected by the Fair Debt Collection Practices Act

Both the FDCPA and your state’s FDCPA (if they have one) only cover consumer debts. States generally have statutes for commercial debt collection.

Myth: State Lines Don’t Matter

If you have a judgement against you and you move to another state, debt collection agencies can’t pursue you for non-payment of the judgement. It is expensive and time-consuming for them.


Always take what a debt collector is telling you with a grain of salt. Double check, verify, get it in writing, and don’t admit anything. Keep good records.

If you are being harassed, contact an attorney. If you need advice, contact an attorney.

We are not attorneys and are not giving legal advice.

If you are ready to deal with your debt, Pacific Debt may be able to help. Contact one of our friendly and knowledgeable staff members to discuss your situation. If we can’t help you specifically, we will refer you to a trusted partner suited to your unique situation.

Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.


how to respond to a demand letter or summons letter

How to Respond to a Summons and a Demand Letter

Responding To The Demand Letter

DISCLAIMER: We are not lawyers and are not giving legal advice. We strongly recommend speaking to a professional attorney.

If you get a demand letter, you need to read it very carefully and respond within the time limit set out in the letter. Credit collectors can and do make mistakes. Make sure that the debt is yours or that you are responsible for it. Make sure that the debt amount is accurate. If it is older than three years, check your state (or that state where the debt was incurred) statute of limitations. Each state is different, and limitations range from three to ten years.

Read the Demand Letter to:

  1. Make sure the debt is yours
  2. Make sure the debt amount is accurate
  3. Make sure the debt circumstances are correct
  4. Make sure your debt is within your state’s statute of limitations

The letter may threaten all sorts of actions. Some of this may be hyperbole, meant to scare you or take advantage of your lack of knowledge.

Below is a Letter of Demand Sample.

demand letter sample

If you dispute any of the information in the letter, respond in writing. Explain why the information is incorrect and if you have documentation to support your claims, send copies. DO NOT send the actual documents.

Once you have verified the information, respond in writing.

  • Be polite
  • Explain any misunderstandings
  • Send copies of documents that support your argument – do not send the actual documents
  • Send the letter with confirmation of delivery

In your response letter, do not make promises to pay, especially if you do not plan to pay. That offer can reset the statute of limitations. Do not admit you are responsible but do not lie. Finally, don’t make threats or use profanity.


  • Make promises to pay
  • Admit that you are responsible
  • Make threats
  • Lie

Responding To The Summons Letter

Take a summons letter very seriously. Do not ignore the letter. If you ignore the letter, you may lose the case. The summons is a legal action. If you ignore it, the next step the court will take will be a warrant for your arrest.

If you receive a summons, make sure that you are the correct person. The heading will read Plaintiff (the creditor) vs Defendant (you). If this is not you or your debt, respond in writing immediately. There is be a section explaining how much the debt is and how and when it was incurred. Make certain these are correct. You will receive notice of where, when, and what date you are expected to appear in court. If you incurred the debt in another state, you may have to travel to that state.

Below is a Summons Letter Sample.

Summons Letter Example

If you receive a summons:

  • Make sure the debt is yours
  • Make sure the debt amount is accurate
  • Make sure the debt circumstances are correct
  • Make sure your debt is within your state’s statute of limitations

If you need to respond to a summons, include ALL the information on the letter so it can be filed correctly. This includes:

  • Court’s name
  • The case number
  • Your name
  • The creditor’s name

If you have a legitimate reason for not being able to attend the hearing, you may ask, in writing, for the date to be changed. The court may or may not grant the change.

Notice of Intention to Defend

If you plan to defend the suit, you must let the court know, generally within ten court days. The summons will contain a Notice of Intention to Defend. You will fill it out and make two copies. One copy must be taken to the court issuing the summons. It will be stamped and filed. Have the original stamped as well. The other goes to the plaintiff’s attorney or address on the summons. Have the original stamped by the plaintiff. Keep the original.

If you miss the 10-day limit, follow the above advice. Email or fax the notice to the attorneys and then deliver the copies as noted above. It may help you avoid the default judgement.

To defend a summons:

Fill out the Notice of Intention to Defend included in the summons

  • Make two copies
  • Take the copies to the court issuing the summons
  • Have the original and the copies stamped
  • Give one copy to the court to file
  • Give one copy to the plaintiff or plaintiff’s attorney (address will be on summons)
  • Have the original and the plaintiff copy stamped by the plaintiff
  • Keep the original!

Hiring a Lawyer

It is your right to contact an attorney. If the case is complicated or involves large amounts of money, you may want to be represented in court. Be aware that that the losing side may be required to pay the legal fees of both sides.


Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.

what is a summons

The Difference between a Summons and a Demand Letter

DISCLAIMER: We are not lawyers and are not giving legal advice. We strongly recommend speaking to a professional attorney.

You’ve gotten a letter from your creditor. What action do you need to take? It depends on what type of letter you get. You may receive a demand letter or a summons letter. They are distinct, and each requires a different level of action.

Demand Letter Versus Summons Letter

A demand letter gives you formal notice that your creditor is considering legal action. It may come from an attorney or from the creditor. There will be a demand for action, such as repaying your debt. A demand letter will include a threat of legal action.

A summons letter comes from the court system. It is a formal notification that you are being sued in court. It will contain the name of the court, the case number, the parties involved, and what you must do. The summons letter will either be delivered by a law officer or by registered mail.

What is a Demand Letter?

You may receive a demand letter that looks something like this:

Letter of Demand Sample


Fair Debt Collection Practices Act

You are protected from harassment by the federal Fair Debt Collection Practices Act (FDCPA). Your state may also have a Fair Collections Practices Act that adds additional protections. Your demand letter, whether it comes from a lawyer or debt collection agency, must respect the FDCPA.  The federal law includes:

Debt collectors can NOT:

  • Charges more than 10% interest
  • Garnish more than 25% of wages
  • Use/threaten physical force or criminal tactics to harm you, your property, or your reputation
  • Accusing you of committing a crime for not paying the debt
  • Make/threaten to make defamatory statements to someone else
  • Threaten arrest, to seize assets, or garnish wages, unless actually planning to take such action
  • Use obscene or profane language
  • Cause you to spend money you wouldn’t otherwise have spent (ie long-distance telephone calls)
  • Call you repeatedly or let your phone ring repeatedly
  • Call frequently
  • Contact your employer, except to verify employment or health insurance status, garnish wages or locate you
  • Reveal information about debt to anyone except your spouse or your parents if a minor.
  • Publicly publish your name for failing to pay
  • Send a postcard or letter with revealing information on the envelope
  • Claim to be someone other than a debt collector, including a governmental official
  • Use stationary that appears to be from a law firm (unless they are)
  • Charge you collection or attorney’s fees unless legally allowable
  • Threaten to report you to a credit reporting agency if they have no intention of doing so
  • Send a letter claiming to come from a claim, credit, audit, or legal department unless it is

Debt collectors must:

  • Disclose caller identification
  • May contact your family to locate you
  • Must serve you with notice of a lawsuit if suing you

If you receive a letter that violates any of these, you may have a case to sue the collection agency. Make sure you keep a written record of all letters, emails, or phone calls. You may have to speak to an attorney in order to stop harassing behavior.


The Summons Letter

If you receive a letter delivered by a member of the sheriff’s office, or as a registered letter, it is a summons letter. You may be asking yourself what is a summons letter?

It will look very formal and make look like this:

Summons Letter Example



Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.

What is Bankruptcy featured image

Top 10 Most Common Bankruptcy Questions

Below is a list of the Top 10 Most Common Bankruptcy Questions. Please take the time to read through it as you may find it useful. DISCLAIMER: We are not lawyers and are not giving legal advice. Before filing bankruptcy, talk to a lawyer in your location.

1) Does Bankruptcy Clear Debt?

In general, bankruptcy clears out most unsecured debt. Unsecured means the loan is not backed up by a guarantor or asset. Unsecured debt can include medical bills, overdue utility payments, credit cards, personal loans, and certain contracts, like gym memberships. Secured debt includes purchases on a secured credit card and large purchases like homes and cars.

Federal student loans are unsecured but typically cannot be wiped out in bankruptcy. Child support, alimony, and most tax debt are also not included.

2) How Much Debt is Needed to File Bankruptcy?

For Chapter 7, there is no minimum amount of debt. It depends on your individual situation. The court will look at whether you are able to repay debt outside bankruptcy, if creditors are willing to work out a repayment agreement, and what types of debt you have.

For Chapter 13, you can not have more than $1,184,200 in secured debt or $394,725 in unsecured debt. These numbers are adjusted periodically.

3) Should I Declare Bankruptcy or Seek Debt Settlement?

This depends on your specific case. In debt settlement, you and your creditors agree on a lesser amount to be paid than what is owed. Bankruptcy erases most of your debt depending on what type of debt it is, and which bankruptcy you filed. Bankruptcy can also be very expensive, largely due to the legal fees. Not to mention, there is a pretty bad stigma that comes along with it that nobody wants to be associated with.

Both methods may negatively impact your credit score. Debt settlement is not a public record but missed payments could stay on your credit report up to seven years, while a bankruptcy is public record and can show up to 10 years. With debt settlement, you may be required to stop making credit card payments before the creditor will consider working with you. Once you have paid off the agreed upon (settled) amount, your credit report will show the account was paid off, but for less than what was originally due. As you pay off your debts and use any new credit carefully, your credit score should start to improve. Rebuilding your credit rating takes both the careful use of credit and on-time payments. With care, you could start to see improvements in a fairly short period of time.

Pacific Debt offers a FREE Consultation to anyone looking at debt settlement options. Our Debt Relief Program is designed to try to get you out of debt in two to four years.

4) How Often Can You File Bankruptcy?

As a general rule:

Chapter 7 then Chapter 7 –  You must wait eight years from the date you filed the first case.

Chapter 13 then Chapter 13 – You can’t get another discharge for two years, but you can file a second as soon as the first case is closed.

Chapter 7 then Chapter 13 – Commonly referred to as a Chapter 20 bankruptcy. You must wait a minimum of four years.

Chapter 13 then Chapter 7 – You must wait up to six years from first filing date unless you have paid off all unsecured debts or made a “best effort” to repay at least 70%.

For more information on how often you can file a bankruptcy or more information on the bankruptcy basics, check out National Bankruptcy.

5) What Happens When You File Bankruptcy?

In a Chapter 7 bankruptcy, your previous debts are usually wiped out, along with your good credit history. You have the opportunity to rebuild your credit. In Chapter 13, you repay your debts for a reduced amount over four to six years. In both cases, the bankruptcy will stay on your credit report for up to ten years.

6) Can You File Bankruptcy on Medical Bills?

Medical bills are considered unsecured debt and can be easily wiped out in most cases. In a Chapter 7 bankruptcy, you must first pass a means test. There Is no limit to the amount of medical debt.

In a Chapter 13 bankruptcy, your debt can’t exceed the debt limits. You repay the bills based on income and expenses, but usually not the full amount.

7) How Long Does a Bankruptcy Stay on a Credit Report?

A bankruptcy can stay on your credit report for up to ten years.

8) Can I be Approved for Credit Cards After Bankruptcy?

Yes. Depending on the credit card company, you may apply for both secured and unsecured cards. With a secured card, you must have a certain amount of money on hold with the credit card company to ensure the bill will be paid. You may have to meet fairly stringent requirements to apply for an unsecured credit card.

Are you wondering how much money you are spending on credit card interest? Our credit card calculator can help you figure out exactly how much money you’re paying on interest and principal each year.

9) Is Buying a House After Bankruptcy Possible?

Yes, within certain guidelines. After Chapter 7, you must wait two years for an FHA or VA loan, and four years for a conventional loan. After Chapter 13, the wait time is roughly halved. Often, you will have to show a 12-month consecutive record of on-time payments and have the court’s permission.

Check out our recently published article on How to buy a house with bad credit.

10) How Long Does It Take to File Bankruptcy?

It takes roughly three to six months to file and receive a discharge. In Chapter 13, the repayment time may take three to five years to finish paying existing debts.

Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.


Disclaimer – We are not lawyers and we are not giving legal advice. These are merely some bankruptcy options and information. Consult an attorney who specializes in bankruptcy law BEFORE you do anything.

How to improve your credit score in 30 days

How to Improve Your Credit Score in 30 Days

Your credit potential lives and dies by your FICO rating. You’ve probably heard that term but may not know what it means to you and your credit. In this article, we will go over some common techniques you can follow in order to start improving your credit score in 30 days.

What is My FICO Score?

FICO, or Fair, Isaac and Company, started in 1956. It is a data analytics company focusing on credit scoring services. Before 1956, you had to know someone to get a loan, or have a lot of collateral, or pay outrageous interest rates. FICO changed all that and allows people to get loans based on their history of paying back loans. FICO is a brand name, but credit reporting agencies either use My FICO or VantageScore.

The higher your FICO score the better loan rates are most of the time. Since your FICO score is very important, find out what you can do to start improving it right away. In some cases, you can start to improve your credit score in 30 days.

To have a FICO score, you must have at least one account open for six months or longer that has been reported to the credit bureau in the last six months. You cannot have a deceased person on the account. The report is not just late or missed payments, all formal loans are reported to the credit bureau.

Pacific Debt can help you become debt-free with their debt settlement program. Get your FREE consultation today!

Guidelines to Build Good Credit:

  • Pay your bills on time
  • Use credit sparingly
  • Stop applying for new credit cards. Each query by a credit card company lowers your score
  • Use your credit responsibly

You can get your FICO score very easily. You are entitled to one free report a year from TransUnion, Experian, and Equifax. You want one from each because they do not share data among themselves. To get your FICO report, contact:

TransUnion https://www.transunion.com
Experian https://www.experian.com
Equifax https://www.equifax.com/personal

On the report, you will see your score and a list of your creditors. There will be a section for all your open and closed accounts, defaults, bankruptcies, and any credit inquiries for the last seven to ten years.

Check this over very carefully. Mistakes happen. People often discover they have been victims of identity theft through their credit scores.

Generally, lenders prefer to see a 680 credit score or better. If yours falls below that, you can improve your credit score fairly quickly.

How to Improve Your Credit Score in 30 Days

Below is a step by step guide to start improving your credit score right away. In some cases, this can take longer than 30 days to see positive results.

Step 1: Request your annual reports and examine them carefully.
Step 2: Correct any errors you find. This is a lengthy and difficult process but stick with it.
Step 3: If you have late payments, make them up and then stay current on your bills.
Step 4: Pay off smaller balances.
Step 5: If you are in collections, contact them to see what you can do to resolve the issue. The collection report will stay on your report for seven years, but it won’t have as big an impact.
Step 6: Remove older, closed accounts. You need some of these older accounts to show that you do pay off your debts, but too many are a red flag.
Step 7: Ask your credit card company for either a lower interest rate or an increase in your credit limit. DO NOT use that increase for more purchases!
Step 8: Get secured credit cards. These require a deposit to show that you can pay off the card.
Step 9: Try to have no recent revolving balances (unpaid balances).
Step 10: Remove credit inquiries.

How to Remove Credit Inquiries Fast

Whenever you apply for a job, fill out credit card paperwork or even get a new cell phone, the company will usually do a “hard” inquiry on your credit. Each time this happens, it could drop your score by five points and stays on your credit history for two years.

To remove credit inquiries from your credit report

  1. If you did not authorize the inquiry, send a certified letter to the credit bureau
  2. Tell them you did not authorize it, to investigate it and then remove it from your account
  3. Include a copy of the report with the inquiry highlighted
  4. Request they send another report once the inquiry is removed within 15 to 20 days
  5. Keep a copy of the letter for your records
  6. Follow up

How Long Does It Take to Improve Your Credit?

You can make improvements to your credit score in 30 days. To make larger, more significant improvements will take time. A bankruptcy will stay on your report for at least six years and has a huge impact on your score. Missed payments and defaults take about 18 months to be considered less important.

My Fico Summary

The simplest way to maintain at least a 680 credit score is to pay your bills on time, use credit wisely, and avoid getting into debt in the first place. Unfortunately, that can be easier said than done. If you need help, a reputable debt settlement company like Pacific Debt, Inc can help.

Pacific Debt, Inc offers a FREE consultation. Their debt specialists will perform an in-depth analysis of your debt and advise you on your options. They ensure that you understand all the program details. Depending on your financial situation, Pacific Debt, Inc works directly with you to become debt free in less than two years. The company does not make money unless your debt relief program works for you. You have nothing to lose and everything to gain by contacting Pacific Debt for your free consultation.

Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.


Free Consultation
close slider