As you should already know, your credit score is absolutely essential to your overall life. If you’re not taking steps to keep your credit in good shape, there is a good chance that you will regret it shortly. After all, poor credit will make it nearly impossible to get a loan, and you’ll probably have a tough time acquiring some jobs. Collections agencies can be a hindrance. Once you’ve been reported to one of these companies, it will show up on your credit report. The good news is that there are things you can do to solve the problem. Below, you’ll learn about some of the ways you can get the collections removed from your report.
Debt Collection Basics
A debt collection is nothing more than a financial account which has been given to a 3rd party debt collector. The debt collector will be responsible for collecting the debt. They have numerous tools and techniques at their disposal. They can send you a letter and phone you repeatedly. Usually, you’re only going to be reported to a debt collector if you’ve missed your payment several times and refuse to pay. When this happens, the debt collector will be notified, and it’ll be marked on your credit report.
Dispute It
First and foremost, you should take a close look at the collection. Is the debt really yours? There is a good chance that it is not. If this is the case, you should not put up with it. Get in touch with the debt collector and tell them that the debt isn’t yours. You might need to provide them with evidence to back up your claim. With the right evidence and a little patience, you’ll be able to get the collections removed from your credit report without doing anything else. Just file a credit report dispute with the credit bureaus, and they’ll remove it. You can also ask for debt validation. Either option can help to some degree.
Wait Seven Years
If you’re not interested in hurrying the process, you should just wait it out. The Fair Credit Reporting Act or FCRA states that past due accounts are only allowed to remain on your credit report for seven years. Some collectors will attempt to re-age the debt. This will make it appear that it became delinquent later than it really did. After seven years have passed, you should go ahead and dispute the debt with the credit agencies. They’ll remove the collections from your credit report if you can prove that it has been seven years.
Dispute After A Sell
Another thing to note is that collection accounts are actually passed around regularly. In fact, this usually happens every six months. When the debt is sold to another collector, there is a good possibility that the collection agency on your report isn’t the company currently seeking the money. Once the debt has been passed to another company, you should try disputing it again. If the delete collection items, you might want to directly speak with the company. They’ll often be willing to negotiate.
Pay It Off
If none of those above tips have helped, you might want to consider paying off the debt. Negotiate with the collector and see if you can get it removed from your report. Just remember that you’ll be required to pay some portion of the debt. Contact the collector and tell them you’re willing to pay off the debt. Tell them you’ll make a down payment if the collector strikes the debt from your credit report. This can be done by letter or through the phone. If you’re using the phone, you must get a written agreement ahead of time. Never make a payment with only an oral agreement. This could come back to haunt you in the future. Once the payment has been made, you should check your credit report to ensure that the debt has been removed.