How to Make Sure You Stay on Top of Your Credit as an Amazon FBA Seller
Credit can be tricky. Especially if you have unpaid debts, they can really hurt your credit. Unfortunately, if you want to start up an Amazon FBA business or if you have one already, at some point, you might need to take out a loan for your business or purchase products or services to help your business on a line of credit. However, you have a low credit score, this can be difficult. If you want to know some tips and tricks about how to improve your credit score as an Amazon FBA seller, watch this video
and keep reading.
What Does It Mean if Your Debt Is in Collections?
If you have an unpaid debt for a long time, whether it be a credit card or something else, a collector will eventually begin ‘hounding’ you for payment. What happens is that your lender eventually does not want to handle your debt anymore. Your credit card company or whomever it is that you owe money to will decide that your debt is not worth their time and they will auction your debt for a low cost to a collection agency. That collection agency will then try to get you to pay them more than what they bought your debt for.
Basically, if you owe $2,000 on a credit card, the credit card company will eventually sell your debt for something like $200 dollars to a collection agency. That agency will then try to get you to pay the full $2,000 dollars or settle for a lower payment. They would profit up to $2,800 dollars!
Amazon FBA hack for sellers: How to Not Pay
Even though the collection agency might be willing to settle for a lower payment, it would be better if you did not have to pay, right? Well, there is a loophole that will actually help you to avoid paying them and still allow you to repair your credit.
The terms and conditions that you agreed to (a really long document that you check a box saying “I agree”) clearly state that the credit card company or lender will not sell your information to a third party. They also state that you are entitled to a 100% accurate credit report.
All you have to do is write a letter to the credit bureau, the original lender, and the collection agency that states that you have the right to a fair and accurate credit report and that your credit report was inaccurate because you never owed any money to the collection agency. You should also state that the terms and conditions you agreed to stated that your information would not be sold to a third party, but that you are now receiving calls from a third party company. You can also include that you are willing to take them to small claims court.
If you do this, nine times out of ten, they will just drop your debt and fix your credit to save themselves the trouble since they know that you are willing to financially protect yourself.
More Tips and Tricks for Amazon FBA
If you want to learn more useful hacks and how to be the best at Amazon FBA, click here. Project Nine University
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