How You Can Remove a Collection Account From Your Credit

Posted by Matt Douglas

November 15, 2008

by Justin Hutto

You must dispute a collection, to remove it from your credit report. This dispute needs to be filed with the credit bureaus.

You file a dispute by creating a dispute letter. In this letter you must identify the mark being disputed and provide a reason as to why it is inaccurate and should be removed.

You will have to send a copy of this letter to each credit bureau. Upon receipt of your letter the bureaus will conduct an investigation into the dispute.

It is common for investigations to result in the deletion of a mark. This is because most lenders and collection agencies are unwilling to spend the resources verifying uncollectible debts.

If the disputed item is verified then a credit repair service can be very helpful. This service will be able to use advanced dispute techniques such as; escalated dispute information requests, debt validation, 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.

Collection agencies will either buy your debt for a fraction of the balance or they will collect on a commission basis. Meaning they will be paid a percentage of every dollar collected.

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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For more tips to remove a credit card collection or to learn how to remove negative marks such as a charge off visit us.

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