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A collection is when you fail to pay a debt and the original creditor sells your debt to a debt collector or collection agency. When your debt ends up in collections, this is reported to the three major credit bureaus – Experian, TransUnion, and Equifax – and negatively impacts your credit score.
Struggling to get out of debt and need a little help?
A collection will remain on your credit report for seven years – even if the account was paid in full – unless you do something to remove it. And you may want to remove it because unpaid collections drag down your credit score and make you look bad to creditors.
Luckily there are several things you can try to get collection stains off your report. Below, we’ll walk you through the steps you can take to remove collection marks from your credit report step by step.
1. Do Your Research and Gather Evidence
The first step is to understand what you’re up against. Get a copy of your credit report from each of the three major credit bureaus. Then review these reports carefully and identify any collections accounts that may be hurting your credit score. Make sure to note the name of the collection agency, the amount owed, and the date the account went into collections. Next, gather evidence related to the collections account. This includes proof of payment, correspondence with the collection agency, or any information that suggests the debt isn’t valid.
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2. If It’s an Error, Dispute It
If you believe the collections entry on your credit report is an error, don’t hesitate to dispute it. Credit bureaus must investigate and correct inaccuracies within 30 days of receiving a dispute. You can dispute inaccurate information through the credit bureaus’ websites or by sending a written dispute letter. Include any evidence you’ve collected to support your case. If the information cannot be verified, it must be removed from your report.
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3. If You’ve Paid the Debt: Ask for a Goodwill Deletion
The negative entry can remain on your credit report and harm your credit score even if you’ve paid it. In such cases, consider reaching out to the collection agency and asking for them to remove the negative entry as a gesture of goodwill. Be polite and explain your situation, emphasizing your efforts to improve your financial standing and your new positive payment history. While there are no guarantees, some collection agencies do grant goodwill deletions.
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4. If You Haven’t Paid the Debt: Try Pay for Delete
For unpaid collections accounts, attempt a “pay for delete” negotiation with the collection agency. Here you offer to pay the debt in exchange for the removal of the negative entry from your credit report. Try to negotiate a debt settlement where you pay less than is owed while you’re at it. Always get your agreement in writing that explicitly states the terms, including the removal of the collections entry upon payment. Keep a record of all communication.
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5. Check Your Report After 30 Days
After taking any of the above steps, allow at least 30 days for the credit bureaus and collection agencies to process your requests or payments. Then, request updated copies of your credit reports to verify that the collections account has been removed or updated as agreed upon. If you encounter any issues, follow up with the credit bureaus and collection agencies to ensure the corrections are made.
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The Bottom Line
It is possible to remove collection accounts from your credit report – even if they are accurate – before the seven year mark. If your collection account is accurate, there is no guarantee that the company will help you out, but it is worth a try. If your collection account is inaccurate, gather that evidence and do not hesitate to dispute it. Collection stains can come off credit reports with a little effort.
By following these steps and being persistent, you can work towards a cleaner credit history, which can open doors to better financial opportunities in the future. Remember that patience and diligence are key when dealing with credit repair.
