Removing Collections from Your Credit ReportApril 4, 2022
If you have collections on your credit report, there’s no doubt you just want them to go away. This is because they may be weighing down your credit score and preventing you from getting loans or qualifying for better interest rates. While we have some tips to help you remove collections from your credit report, you should know that it’s going to take time and effort on your part.
What are Collections?
To understand the need to remove collections from your credit score, it is important to understand how collections come about. What are collections? When a debt isn’t paid, the creditor will turn it over to a collection agency or a debt collector in hopes of recouping the money. That action is then reported to the credit bureaus— Experian, Transunion, and Equifax.
Collection agencies will continue to report your collection account for seven years from the date you first fell behind with the original creditor. However, if it’s been seven years, the collection agency might still sue you to collect. But they can’t report it to the credit bureaus.
If your collection account has already dropped off your report, there’s no way to get it back on. However, if you pay off a collection and then re-default, that account could come back onto your credit reports (even if the original delinquency was outside the seven-year reporting period because the new late payment would create a new delinquency date.
If your collection account has over $2500, it can affect your credit report by at least 20-25 points.
Can Collections Be Removed?
The short answer is, Yes! According to Aaron Huebner, the executive director of Ascent Network, there are two keywords that you need to keep in mind as you try to remove collections from your credit report— Verify and Validate.
The federal government requires credit bureaus to provide correct information on each item on your credit report. They also have to make sure that the debt has not expired. Here is a case:
If the amount a collector is trying to collect from you is below $1000 and isn’t from a financial institution, you may have some success asking for proof of the debt. Why? Because the law requires collectors to provide proof of the debt if you ask for it within 30 days, and since the debt might have gone through so many collection agencies, they may not have the original documents, which will prompt them to remove the collection from your credit report.
Remove Collections from Your Credit Report( How to Do It)
Remove Collections from Your Credit Report( How to Do It)
For you to be successful, you have to do these three things:
? Check your credit report
? Check for errors in your credit report
? Choose an action plan
Check Credit Report
You have to check your credit account from AnnualCreditReport.com and review your credit reports to see if the information is correct. The report should show if the collection is paid or not, the remaining balance, the date you defaulted, and the original creditor.
Compare the information in the credit report against your records. You can check your payment records when you log in to the account listed if you don’t have the records. And know the statute of limitations for collecting debts in your state.
Dispute Any Inaccuracies
In case of an error on the part of the debt collector, ask them to validate the debt. You should dispute the collection within 30 days from the date the collector contacted you. If the collector can’t validate, the collection should be removed from your report. However, you must follow up to ensure they remove the collection from your credit report.
You should also dispute the collection if the debt is too old to be reported. The federal law in many states requires that any delinquent account should be removed after seven years. If you can still find a delinquency report showing up after seven years, you should file a dispute with the credit bureau that still shows it to have it removed.
Request for a Goodwill Deletion/ Pay for Delete
Have you been making regular on-time payments? If yes, the first step is to mail the collection agency and ask for a “goodwill deletion.” If you have been making regular on-time payments, mail the collection agency a “goodwill letter” and explains your situation. This goodwill letter should explain to the collection bureau that you are trying to buy a house and see if they can honor your request.
There is no guarantee that they will accept your request and if they do, be sure to follow up to ensure they have removed collection from your credit report.
Pay for delete often works if you’ve had only one collection on your credit history. The collector should comply if you pay in full and make a written request that they remove it from your credit reports.
When negotiating pay for delete, it is best to visit the credit collection agency and have the agreement in writing. You can negotiate to pay 30% of the money owed in exchange for deletion and then continue to pay the debt as per the agreement. Remember, a late payment on the debt will be reported as a new entry in your credit report.
How Can Credit Repair Help?
Professionals have years of experience repairing credits and know the exact procedure to remove the collection from your report. A credit repair agency like The Ascent Network has for many years helped many improve their credit score, remove collections from their credit reports, and are thus best-suited to help you, should you feel the procedure involved is confusing.
The Bottom Line
It is possible to have collections reports removed from your credit report if you are keen enough. You have to ensure that the collection agency validates and verifies the collection report they have on you. Failure to which they will have to remove the collection from your credit report. We hope that the above information will help you improve your credit score, remove collection from your credit score, and ease your mind.
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.