How You Can Remove a Collection Account From Your Credit
Written by Justin Hutto on November 28th, 2008You will have to dispute the collection to have the credit bureaus remove it from your credit report. You must file a dispute directly with the bureaus.
A dispute letter must be sent to each bureau. In your letter you have to identify the mark you are disputing and why it is inaccurate and should be erased from your report.
Then a copy of this letter must be sent to each credit bureau. When the bureaus receive your letter and deem it valid they will investigate the disputed mark.
Frequently investigations result in marks being removed from credit reports. Many lenders and collection agencies will not spend the man hours or money to verify disputed debts.
If your dispute is verified then having a credit repair service can be very beneficial. They can use advanced dispute techniques to remove a bad credit item. These techniques include; debt validation, escalated dispute information requests, and creditor direct intervention.
What is a collection?
A collection will occur approximately after 6 months of delinquency. It is a lenders last resort to recover payment.
It is common for lenders to have an in house collection agency. However many also outsource and/or sell the delinquent debt.
These agencies will purchase your debt for a fraction of the balance or they will work together with a lender. This means they will collect on behalf of the lender and receive a percentage of all the money they collect.
An important tip to know is that if you get a collection on your credit report and just pay it, the negative mark will not be removed from your credit. Instead it will just change the status of the collection. The mark will remain and it will still be seen as a negative mark by potential lenders.
In sum you can remove collections from your credit report. You do not have to live with bad credit items for 7 years.
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