How To Remove Collections From Your Credit Report

You can remove collections from your credit report. Contrary to popular belief you don't just have to live with negative items on your credit history.

 

1. You need to file a dispute with each credit bureau - to do this you must write a dispute letter to each credit bureau. In your letter you will need to include your personal information, the item in dispute, the reason for the dispute, and any other related documentation you have.

 

2. Next the bureau will have to deem your dispute valid - this is the tricky part of credit repair and why so many people believe you have to just live with bad credit. The bureaus are very reluctant to investigate a dispute. This is because they are only spending money when they conduct investigations.

 

The bureaus do not earn any extra money by correcting inaccurate information about you. Instead the bureaus earn their profits when they sell the information they have collected on you to businesses and lenders. This information is still worth the same if the information is correct or not.

 

3. Stay determined - often your dispute letter will be responded to with a letter requesting more information before they will investigate. Go ahead and comply with these requests and try to avoid getting frustrated. However if the tactics the bureaus use overwhelm you we strongly encourage you to see our a professional credit repair service.

 

4. Item is investigated - the bureau will contact the collection agecny that created the negative item and ask them to verify it. If the agency does not verify it then it must be removed from your report. It is not uncommon for items to be removed once they get investigated, the trouble is getting the investigation started.

 

5. You will get a results letter - once the investigation is complete you will get a letter from the bureau notifying you of the results. This letter will tell you if the item in dispute was removed from your report or verified by the debt collector.

 

If you are currently being contacted by a collection agency we suggest you use debt validation before you settle with them. This tool forces the burden of proof on the debt collector. They must prove they legally own your debt and if they can not then your debt is erased and the item will be removed when you dispute it.

 

Howver if the debt is validated then we suggest you settle the account. First, you need to reach an agreement with the collection agency where they will stop reporting the item to the bureaus in exchange for your payment. This is common practice and if you neglect to do this then paying an old debt will do nothing to help improve your score.

 

Once you make your payment - which should be for only a fraction of the balance. Your account was purchased for pennies on the dollar and the balance has been inflated due to fees and / or a high interest rate.

 

After you settle this debt you can go and file a dispute. When the bureau investigates and contacts the agency they will not verify the account as per your settlement agreement and the bureau will be forced to remove the collection from your credit report.

 

You don't just have to live with bad credit on your credit file. You can dispute and remove negative items and take the first steps to a 700 plus FICO score.