Here’s What Happens Once Your Debt is Sent to Collections in Arizona

debt collections arizonaYour medical bills piled up quickly and you did the best you could to pay them all. Or maybe the utility bill or cell phone bill just wasn’t paid because you were moving from one home to the next. Possibly a couple of credit card minimum payments were simply beyond your financial means. Here’s what happens when your debt is sent to collections in Arizona.

Expect a lot of phone calls

The collections company is going to do everything that they can to collect on the debt. Here in Arizona, collections agencies are prohibited by law from engaging in deceptive practices. Additionally, they can’t call you at all hours. They also have to honor your request not to be contacted during your traditional work hours. They will continue to call you, but at least it’ll be when you’re not on the job or in the middle of the night.

Most people will try to avoid these calls entirely. That makes perfect sense since you might feel some embarrassment regarding the debt and the fact you’re unable to repay it immediately. Answering these calls may produce an opportunity to settle these debts for less than the full amount though so speaking with the debt collection company might be worth pursuing.

Past due bills will affect your credit score

Your credit score is a quick way for creditors to see how creditworthy you are. If you have a balance that enters collections, this will reduce your credit score. Certain kinds of debt will be discharged after a few years. If you are facing student debt, that will follow you until paid.

The reduction of your credit score will affect your interest rate should you try to open a new line of credit. This includes a new car loan or a new mortgage. Again, if at all possible, resolve this collections issue before you make a large purchase that includes financing. Your future wallet will thank you.

Next steps after a debt is sent to collections

Eventually, you will need to resolve the debt either through negotiation and repayment. Once settled, you can begin the process of rebuilding your credit. This can be done through the use of Secured Credit Cards. Also, reducing your revolving balance of your existing credit cards to increase your credit score as well.

Your credit score is one of the most important numbers in your financial life. Maximizing your score will get your better interest rates and could make even more credit available to you if you need it.


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not one size fits all. We tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

How to Remove a Derogatory Account From Your Credit Report in Arizona

derogatory creditIt doesn’t matter if it was a completely missed payment or two, a late payment or some life event that compelled you not to pay a debt. A derogatory account is now on your credit report. Here are some steps that will help remove a derogatory account from your credit report in Arizona.

The first step is getting a current version of your credit report.

Remember, you get one from each of the three credit reporting agencies once a year. Each credit report includes vital information that might be helpful in getting the offending account removed. The information there includes the amount that the creditor is claiming that you owe, the origination date of the delinquency and the date that the account will fall off from your credit report.

Once you have the information, check the information in the credit report relating to a derogatory account. If it is inaccurate, you can and should file a dispute with the credit bureau to remove it from your report immediately. You can submit a dispute online or by physical mail. Fortunately, the three credit bureaus by law have to handle disputes in a timely fashion. Should the derogatory account be removed by the credit bureau, it could rapidly increase your credit score.

If the debt is accurate, it’s time to reach out to the creditor.

Make an offer to either pay off the debt in full or a percentage of it in exchange for them removing the account from your credit report. It is crucial that you get this agreement in writing before you submit a payment.

If it’s a missed payment to a creditor, you could call them up and ask them to do you a favor and remove it from their reporting to the credit bureaus. Getting removals this way is not common, but if you were facing extenuating circumstances, a call center representative or supervisor might be willing to help you. Explain the situation so that they can understand why you missed the payment. If you get a “no” response from the first customer service representative, don’t hesitate to ask to speak to a supervisor. Remember you are asking them to do you a favor. Be understanding if there’s nothing that they can do to remove it.

Another alternative is to wait out the seven-year credit reporting window. After that point, this derogatory account will fall off naturally. Waiting this out isn’t the best option if the debt is recent, but could be an option for a single mistake that happened five or more years ago.

Finally, whether you decide to pay off in full, offer a settlement or wait out a derogatory account, make sure that you get documentation of the resolution of the debt.

We’ve seen these derogatory accounts creep back up at a later date. These are especially troublesome when you’re trying to open up new credit lines or get a mortgage. It’s a good idea to keep the complete documentation that shows them as resolved in case a dispute arises. While some work is necessary, it is entirely possible to remove a derogatory account from your credit report in Arizona.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Can You Get a Home Improvement Loan with Bad Credit in Arizona?

home improvement

Your head is spinning because there’s another issue with your new “Dream Home” that has come at you unexpectedly. You overcame the first-time home buyers with bad credit hurdle but now that you’ve moved in, it’s clear that the house is in need of work to make it a place you’re ready to enjoy living in.

Can you get a home improvement loan with bad credit in Arizona?

The answer is yes, but it may take a bit of creative thinking and work on your part to get the money you need to make the repairs happen.

First up, check to see if the U.S. Department of Housing and Urban Development has a program that you qualify for that will help finance the costs of the improvement. They have plenty of tips on how to choose through all the options whether you’re looking to do-it-yourself or hire a professional to do the desired upgrades.

Second, consider speaking with your mortgage bank to see if a home equity loan is possible. They have a vested interest as you do; improve the value of the home. Making improvements to your house may not just improve your standard of living. It could improve the house’s total value should you need to sell in the near term future.

Next, look at options in micro-lending services such as Prosper. While the interest rate of the loan may be more than government or home equity loan, your ability to appeal person to person could be the difference in getting the cash you need.

Finally, consider asking a family member or close friend to co-sign a loan with a traditional bank. By asking them to do this, you and the co-signer are both taking on the debt and the risk of repaying the loan. Their signature could give you a much better interest rate, too. It could make the difference between getting a home improvement loan with bad credit or not.

The best way to increase your chances of getting a loan through traditional banks is to improve your credit score.

Improving your score will directly affect your interest rates and remove hurdles in order to get the financing you need.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

What you should do about the Equifax data breach

what you should do about the equifax data breachAs you may be aware, there has been a data breach at Equifax. There were 143 million people whose personal information was exposed.

Here are the facts, according to Equifax. The breach lasted from mid-May through July. The hackers accessed people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people.

What should you do about the Equifax data breach?

The problem is the information is evolving every day. There have been more than two dozen lawsuits in federal court against Equifax. One website has gone up that allows you to sue Equifax with one click. The site Equifax launched to reveal whether or not you have been impacted has been seriously questioned. And, Equifax is pivoting it’s message as public response pours in.

As this situation evolves, there are some simple things you should do in response to the Equifax data breach.

Here is what you should do about the Equifax data breach:

1. Credit Monitoring

Whether your information has been exposed or not, it is ALWAYS a good idea to be enrolled in credit monitoring.

If you do not already have it, you should sign up. When you have credit monitoring, you will receive alerts when there are any changes with your credit, which will help avoid any surprises when it comes time to get a loan or credit. We usually recommend this site, which monitors all three bureaus.

Using credit monitoring services to monitor your credit reports is one of the best automated ways to detect false information that negatively impact your credit scores. By simply signing up for a credit monitoring service, you will receive notifications anytime your scores change. If there’s a drastic change, then you know that you may have suspicious activity reporting.

Fortunately, there are a variety of free and paid credit monitoring services out there to monitor your credit. In fact, today many credit card companies and credit bureaus are offering their own credit monitoring services to consumers.

If you’re offered or considering an identity monitoring or credit monitoring service, make sure you check for trial periods, fees, cancellation requirements, and other restrictions so that you don’t face unexpected fees, charges, or other limitations.

Here are some of the best credit monitoring services to monitor your credit.

Here is what you may think about doing in response to the Equifax data breach.

1. Place a Security Freeze on your credit report

A security freeze on your credit report generally prevents new credit and accounts from being opened in your name.

All new accounts that are requested will be declined and you will only be able to work with your current creditors. You will need to call each reporting agency and place the freeze yourself. It will be quite a process to thaw your credit, but unless you need credit to buy a home or car in the near future, it is an option that offers more protection.

You can place a “freeze” on your credit file by contacting each credit reporting company.

2. Fraud Alerts

A fraud alert lets creditors and lenders know your credit report may have been compromised. The alert lasts 90 days, and is a good step to take as it will protect your identity and will protect you from future theft – even if you only suspect identity theft.

You can add a fraud alert to each of your credit files by going online or calling each bureau.

Once you place a fraud alert with one of the reporting agencies, they are required to tell the other two agencies. You’ll provide your phone number to the bureaus so you can be contacted in case anyone asks for credit in your name within your fraud alert timeframe. If someone does ask for credit, then the creditor will contact you to verify your identity and find out if you placed the request.

Setting up an initial fraud alert is free and means that you’re protected from identity thieves opening more accounts in your name. This gives you time to clear up the bad accounts.

How Fraud Alerts Help With Credit Protection.

There are also extended fraud alerts. An extended alert is for identity theft victims and is good for seven years. It requires that creditors contact you through the phone number or other contact method you designate to verify you’re the person making the credit request.

Contact us immediately if there is any new activity you don’t recognize. Please contact us with any questions.

Thank you!