Removing Debt Collections from Your Credit Report
If you are a debtor and a debt collections agency has already contacted you, you
must prepare yourself. At this point, your account has already been given a status of
“collection” and this is very bad since it will appear in your credit report. This will give you a
bad credit score and will affect your future loans and other credit applications. The best
course of action here is to remove your collections account from your credit report.
But how can you do that? First and foremost, verify if it is really your debt. If the
debt collections agency was not able to provide you with proof, then you do not have to pay
it. All you have to do is file a credit report dispute. Then, the credit bureau will remove the
debt or the collections account from your credit report.
Now if the debt is really yours, one way to remove the debt from your credit report is
to wait for seven years – the time it takes for past accounts to stay on your credit report.
But this is not advisable since you will find it very hard to apply for loans if you have this on
your report. However, if you insist on waiting, just make sure that your debt collections
agency is not doing things to lengthen the process and make your debt appear on your
report even after seven years. If so, you can dispute this debt.
Another way to remove the debt from your credit report is by talking to your debt
collections agency. If you promise your collector that you are going to pay, he or she might
agree to remove the item from your credit report. This signed agreement is called a pay for
delete letter. Send the letter through certified mail so you can offer the return receipt as
proof. After giving the payment to your collector, be sure to check your credit report to see
if it has already been removed. If it is still there, go to your credit bureau and give it your
agreement copy with your debt collections agency and proof of payment.
About the Author
The author, Dale Nelson, is a financial consultant who habitually writes about credit
collection services and debt collection agencies. Recently, he has been promoting the
importance of having strict financial responsibilities.
A collections account is a negative item on your credit report. You must do everything to
have it removed from your report if you do not want to encounter difficulties with future