How to Remove Collections to Improve Your Credit ScoreAugust 29, 2022
When you fail to honor your debt obligation, your creditor sells your debt to collectors, and the negative information is reported to the three major credit bureaus (Experian, Transunion, and Equifax).
Collections accounts stick to your credit report for seven years from when your account became delinquent, making you look uncreditworthy to potential creditors. Here are some steps to increasing your credit score by removing collections.
How do I get collections off my credit report fast to Improve my credit score?
To get collections off your credit report fast, you must be proactive and check your report thoroughly. Get your free credit report by visiting AnnualCreditReport.com or from the three major credit bureaus. Compare the details against your records. If you don’t have your payment records, log into the account to check your payment history.
To check for negative accounts, go to the credit history and accounts section to find information on missed or late payments. Check the account status to see if it’s paid, charged off, or closed. Check the account number and the date the debt became delinquent. Once armed with these details, you can take the following steps:
1. Dispute collection error
Dispute a collection account if:
- It is too old to be reported
- It is incorrect
A delinquent account falls off your credit report seven years from the date it went delinquent. However, you may still find the account is not closed. File a dispute with the credit bureau, so they can remove the collection report from your account.
If a collection report is incorrect, gather all the documentation to show the collection appears on your report erroneously. Send a dispute with your correct contact information, indicate the mistake with account numbers, and explain how the information is incorrect. The bureau will have 30 days to correct the errors.
2. Ask for debt validation
The best dispute reason for removing collections is by asking the collection agency to validate the debt. Most often, documents get lost as debts are shuffled from one collection agency to another in an attempt to recover their money. In such scenarios, original documents get lost, and inaccurate details are passed on to debt collection agencies.
You should use this loophole to ask them to verify if the debt belongs to you. They will have to remove collections from your credit report if they can’t validate the debt.
3. Pay collections on time to improve your credit score
When the above steps don’t work, you need to ensure you don’t cause much damage to your credit score. You need to continue paying your debt as you wait for validation from the credit bureau or until you pay your debt fully. You can arrange a payment plan with your creditor and stick to it.
4. Send a goodwill letter
Once a collection account is reported to the three major credit bureaus, the negative information will remain for seven years. Unfortunately, despite having paid your debt fully, some lenders will consider this information when offering you loans. This affects the interest rate because they consider you uncreditworthy and offer you loans with higher interest rates.
Consider writing a goodwill letter, sending it to the collector or creditor, and politely asking them for a goodwill deletion by pointing out that you have fully paid the debt. If the creditor or collection agency agrees, ask for a written agreement that you can present to credit bureaus just in case the agency fails to update them.
How long after paying off collections does credit improve?
Credit score improvement depends on several factors, such as the scoring model used and other items found on your credit report. In fact, paying off your debt can hurt your score at first before you see major improvement. However, you may see some positive changes a month or two after updating the collection account.
Use credit repair companies
Credit repair companies like Ascent Network are experienced in credit score improvement. They know how to negotiate with creditors to remove collections from your report to improve your credit score.
Credit repair companies get much better results than you would alone. They offer additional information that helps you improve your score even further. Before you choose a credit repair company, ensure they are reputable.
Our bottom line
It is possible to remove collections from your credit report to improve your credit score only if you become proactive, check your credit report, analyze the information, and take the necessary steps. You can also use a reputable credit repair company with the experience to improve your score.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.