There is no doubt that if you have a collection on your credit report, it’ll hurt your credit score. Moreover, even though the consequences of a collection on your credit score get reduced with time, the entry remains on your credit report for 7 long years. Thus, also makes it difficult for you to borrow in future. Now, you might be thinking how to deal with this. Well, the best thing you could do to deal with collection accounts is just removing them from your report. Go through the following to know how you could remove a collection from your credit report.
Immediately dispute if the collection is not yours:
If the debt is not yours, then you are not obliged to pay it off. Consequently, the collectors can’t list the collection on your credit report if you don’t pay them off. If you see any such collection on your credit report, dispute the report with the credit reporting company and make sure the collection is removed from your credit report.
Even if the debt is your, you can avoid paying it. You could do this through a debt validation method. If a debt collector calls you for debt repayment, then make sure you request a validation of the debt. If the debt collector fails to provide you with satisfactory proof that you owe the debt within 30 days from the date of calling, the collector must remove the collection reporting from your credit report.
Dispute after 7 years
According to the Fair Credit reporting Act (FCRA), a past due account can stay on your credit report for 7 years from the first date of delinquency. However, fraud creditors or collection agencies often try to manipulate with the numbers in hope to collect the debt even after the collection period.
If the collection mark is still there in your credit report even after 7 years, dispute it with the credit reporting agency and show any proof you have to support the dispute.
Dispute when collectors sell the debt
Often, creditors sell debts to collection agencies and one collection agency to another. Therefore, it’s probable that the collection agency listed on your credit report may not be the agency that’s presently collecting on the debt. If you see this happening, you can simply eliminate the collection attempt just by disputing the debt with the credit reporting agency.
Pay for delete agreement
If you are unable to remove the collection marking from your credit report by disputing it, you can negotiate with the collection agency to remove the collection from your credit report in exchange for a payment. Send the collection agency a pay for delete letter and offer an amount that you’ll be paying if the collector removes the scar from your credit report. However, make sure that the debt collector sends you a signed copy of the letter to finalize the agreement. Never send any payment to the collector until you get an agreement in writing. Moreover, make every correspondence via certified mail with return receipt requested. Once you have made the payment, check if the entry has been removed from your credit report.
If everything fall short
If your every attempt to remove the collection from your credit report has failed, try to pay it. Remember, it is always better to have a paid collection than an unpaid one. A paid account on your credit report also helps you avail loans in future.