Worried about Collections on your Credit Report? Then this is just the guide you need. We will discuss how we can remove these collections from Credit reports, and if it is even possible to remove them from there. We will also discuss the repercussions of not having those collections removes from the report. To find the solution to your problems, read ahead!
Is it possible to remove collections from a Credit Report?
The answer is neither a yes nor no. It depends on a person’s situations, the character and the size of these collections as well as other factors. It can be removed from the credit report if it has been existing for more than 7 years in most of the cases on its own. But if you want it removed earlier, then you definitely have to move some strings. It is not impossible but may need some talking around as well as maybe making a small payment to the concerned party as we shall discuss ahead.
How to remove collections from Credit Report?
If you want to try removing collections from your credit report, you can try doing these things –
Sending a dispute
The first thing that you can try is to send a dispute to Experian, TransUnion or and Equifax. But you can only do this if you notice a collection account that wasn’t supposed to be there on the report. It often is a collection that is either put by mistake on the report or has been calculated by mistake. If you are sure about that, then you must definitely file a dispute and talk about removing these collection accounts from your credit report.
Also, there is a deadline. You must be able to prove your dispute claim within 30 days of its filing. In case you fail to do that, it is considered invalid.
Trying a pay-for-delete agreement
A pay-for-delete agreement is an agreement where you have to pay a certain amount of money to the collection agency. If you are able to do that, they may get convinced and remove the collection from the credit report. But the chances of things turning the other way around are huge. Therefore, make sure you make a written agreement for the same. Once done, keep a copy with you to produce in the future, in case you are required to. But not all collection agencies will be open to that. And sometimes, you have to tip-toe on such matters so as not to catch many eyes.
Simply ask
You can simply ask your collection agency to delete the collection as a favor. If your reasons are genuine, they may even consider them, considering that you have then repaid the debt. This is your best shot as far as this case is concerned, as it is safe and just needs you to show some courage.
In case you fail to get these collections removed from your credit report, your credit score will be affected. This reduces your chances of successfully getting a loan from a bank in the future. Thus, it is important that you give it a try.
