Credit Collections - Remove Bad Credit From Your Credit Report
To remove a bad credit mark due to a debt going to collections you must dispute it. A dispute is filled directly with the credit bureaus.
You will have to create a dispute letter and send it to each credit bureau. In your letter you have to say what mark you are disputing and give a reason as to why that mark is inaccurate.
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 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.
Most lenders have some form of in house collection. However many also will use an outside collection agency and/or sell your account.
Collection agencies will either work with lenders or purchase your debt outright. A collection agency is often brought in to collect on delinquent accounts and they are paid a percentage of every dollar recovered.
Be aware that if you just pay a collection it will remain on your credit report. It will change the status of the collection but paying it will not remove it from your report. Future lenders will still see the mark as a negative item even as a paid collection.
In sum you can remove collections and bad credit marks on your credit report. You do not have to wait 7 years for the mark to expire.
You will have to create a dispute letter and send it to each credit bureau. In your letter you have to say what mark you are disputing and give a reason as to why that mark is inaccurate.
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 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.
Most lenders have some form of in house collection. However many also will use an outside collection agency and/or sell your account.
Collection agencies will either work with lenders or purchase your debt outright. A collection agency is often brought in to collect on delinquent accounts and they are paid a percentage of every dollar recovered.
Be aware that if you just pay a collection it will remain on your credit report. It will change the status of the collection but paying it will not remove it from your report. Future lenders will still see the mark as a negative item even as a paid collection.
In sum you can remove collections and bad credit marks on your credit report. You do not have to wait 7 years for the mark to expire.
About the Author:
To learn how to proceed with an experian dispute or equifax dispute and remove bad credit items from your report visit us.
posted by Credit Counseling at
1:49 PM
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