How to Do a Credit Sweep Yourself

iEditorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

How to Do a Credit Sweep Yourself to Pay a Short-Term Debt

If you have a short-term debt under a line of credit, you can minimize these costs through a credit sweep. You can approach a financial institution to change the contract terms to suit your situation. However, by yourself isn't a straightforward procedure.

You may have seen several adverts among many credit repair companies, but not all of them can help you out.

Read on as we dive into more details on , and other solutions to your credit dilemmas.

What Is a Credit Sweep?

Also referred to as automated credit sweep, credit sweep refers to an agreement or arrangement between a bank and a business or corporation for the bank to use excess or idle cash in a deposit account to pay an outstanding line of credit. The business or account owner sets a threshold level that the bank should maintain. The bank can then use all other amounts above the set baseline to pay the short-term debt.

This also helps a client minimize its costs paid through interest on outstanding debt. The financial institution offering this service can also offer the reverse service by shifting money from a line of credit to a client's deposit account in case the account balance drops below the threshold level.

When Can I Use a Credit Sweep Arrangement?

Large entities with multiple bank accounts with high variability balances and are hard to track on an ongoing basis can benefit significantly by using credit sweep arrangements. This will help them maintain cash balances at a minimum level, thereby reducing the amount of the line of credit.

If you run a small enterprise, entering into a might not make sense because of ongoing monitoring. As a result, paying credit sweep fees isn't worthwhile.

How to Do a Credit Sweep on Your Own

If you have decided to do a credit sweep by yourself, remember that it has to be done carefully and accurately. Keep in mind that making a mistake could adversely affect your credit negatively. Here’s what you need to do:

  1. Start by visiting your financial institution
  2. Set up a target balance that you want to maintain in your account
  3. The bank sets an automatic credit sweep account to transfer the excess funds

The Fair Credit Reporting Act or FCRA ensures that your rights as a consumer are being protected. If you feel that the bank or credit card company is doing you a disservice, you may reach out to the Consumer Financial Protection Bureau or CFPB.

Below are the CFPB’s contact details:

CompanyConsumer Financial Protection Bureau
Mailing AddressConsumer Financial Protection Bureau

PO Box 27170

Washington, DC 20038

Phone Number(855) 411-2372
Email or Contact FormAsk CFPB

Let DoNotPay Help You Do a Credit Sweep

Trying to do a credit sweep on your own can be a frustrating and challenging experience. The procedure can take longer than you expect, which means you may end up paying more costs through interest on your outstanding debts. That's why you need DoNotPay to help make the credit sweep procedure more straightforward for you.

If you want to credit sweep but you are unsure of where to start, DoNotPay can help you out in three easy steps:

  1. Search Clean Credit Report on DoNotPay.

  2. Prepare a recent copy of your credit report that you can use as reference.

  3. Let us guide you through the 4 potential options:
  • If you've already paid off your debt, we'll help you file a Goodwill Removal Request to get it removed.

  • If you notice any errors in your report (we have a list of common errors you can use!), we'll help you file a credit dispute to the creditor or major credit bureaus.

  • If there are no errors, we'll check if you're still eligible to file a debt validation request. If they can't validate your debt, they're required to remove it from your report and they can't collect it!

  • Lastly, if none of the above options work, we'll help you file a pay-to-delete negotiation letter. You can customize the amount you are willing to pay in exchange for getting the item removed.

You’ll love other related DoNotPay products Get My Credit Report, Credit Limit Increase, Keep Unused Cards Active, and more!

Why Use DoNotPay to Do a Credit Sweep?

More and more users are loving how convenient and stress-free DoNotPay handles their credit-related problems for them. DoNotPay is preferred by many because:

  • It is easy to use. DoNotPay has simplified the process and will do the hard parts on your behalf. No more repeatedly filling out the same forms and hesitating if you’re doing things right.
  • Quicker processing times: No need to waste hours doing research or queueing up just to submit any required documents. We can also apply legal pressure to get quicker responses from the collection agency, expediting the process for you.
  • More convenient. You don't have to visit the physical location of your financial institution. Simply send all the vital details online to DoNotPay and leave our team to do the rest.
  • Guaranteed successful results. DoNotPay will work out the best possible scenario for your credit sweep to come through. Your welfare is our priority and our legal experts will always ensure you get the better side of the deal.

Other Things You Can Solve Using DoNotPay

Helping individuals is just one among many other ways that DoNotPay can assist you. This platform is a hub of solutions for other topics and concerns that you may want to solve. We can also assist you in:

Some of the other ways that DoNotPay can help you include:

Feel free to reach out to DoNotPay for more information on how we can help you out on these solutions. Try it today.

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