How to remove debt collections from your credit report. When you fail to pay back your loan after a certain period of time many credits is usually sent your debt to a debt collection agency.
When it gets to a debt collection agency it is the agency that is now responsible for collecting the dead and they will make use of any means available at their disposal to do so. But all this article today we are focusing on how to remove Debt collections from your credit report.
If you have already had your account going to debt collection it is likely going to remain there for 7 years if it is accurate but on this article today there is a way to still remove it whether accurate or inaccurate. Therefore a good one sounds like what you are interested in then follow me as we go ahead and job in because we have no time to waste.
What is a Collections Account?
A collection account happens when you refuse to pay your debt for several months and the lender simply writes it off has been unredeemable and sells it to a debt collection agency. When this happens it means that your account has entered into debt collection. When your account enters into debt collection is now the responsibility of the debt collection agency to do everything in their disposal to make sure you pay.
How to remove Debt collections from your credit report
It is very important to note that if you have Debt collections in your credit report that is accurate you might not be able to get them removed from your credit report however you still need to try. But if the Debt collections entry in your credit report is inaccurate then following these steps will ensure that they are removed from your credit report. The year for all you need to do is simply follow them:
Check all your credit report
Even if you do not suspect that there is a collections account in a police report you still need to check or monitor your credit report constantly you can do so at annualcreditreport.com. this is the website that you can use in checking the three major credit bureaus so that you can request a free copy to know if there is any inadequacy in your credit report.
The affirmation is to request a copy from materials in the room and shake internally to see if there are any collection which is paid or unpaid in your credit report. Make sure to know everything about the collections if they are in your credit report because that is what we are going to be trying to correct in this article.
Determine if the collection account is legitimate
The next step is to determine whether the collections account in your credit report is accurate or it is not accurate. Sometimes the collections card in your credit report might belong to someone else and if it does not belong to you or you have already paid it and it’s still there it is very easy to remove all the way to do is file a dispute. When you file a dispute then it will be removed from your credit report.
Choose your next course of action
They are basically three courses of action that you can take to remove the collections account from your credit report. The first course of action is to dispute inaccurate or incomplete collections reports which I have talked about above. Now if you have already paid the collections account and it is still in your report ask for a Goodwill deletion by sending them a Goodwill deletion letter.
It is important to note that even after asking for a Goodwill deletion from your account by sending them a letter explaining your mistakes and asking for forgiveness and showing your recent payment history it might still not be removed. The last thing you can do is to simply wait out the collections account which will fall out of your credit history after 7 years.
How long do the collections account to stay on your credit report?
When you have refused to pay your loan or any money you borrowed for a long period of time that our account becomes delinquent and when that account is delinquent in collections account is opened in your credit report. When a collection account is open in your credit report it will basically stay in there for up to seven years whether it has been paid or unpaid.
This is why you should do all that is possible so that you have that great god removed from your credit report. But in most cases, the collections account does not usually fall off a person’s credit report after 7 years then in this case you have to file a dispute with each of the major three credit bureaus asking them to simply remove it from your credit report.
How do collections reports impact the credit score
A collections account in your credit report usually causes serious damage to your credit score however it will not damage your account watch the bending on the type of credit model scoring you are using to calculate your credit score. For us people using a fico score 9 it is not going to affect your credit score much because after you have paid the collections account it will not reflect in your credit report.
But the earlier model of the fico score shows your paid or unpaid collections account this means that if a letter makes use of this it is fairly certain that your credit score will take a hit.
Will my credit score increase if a collection account is removed?
The answer to this question is yes your credit score is definitely going to get increased if a collection is removed from your credit score. This is because your payment history accounts for about 35% of your fico score so if a collections account is removed it is definitely going to improve your credit score. But this is also depending on all the items that is listed in your credit report.
