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 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.
A copy of this letter needs to be sent to each credit bureau. When the bureaus get a valid dispute letter they must 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 debt is verified then a credit repair service can really be helpful. They can use advanced dispute techniques such as; debt validation, escalated dispute information requests and creditor direct intervention to remove a negative mark.
What is a collection?
A collection typically occurs after 6 months of delinquency. It is a last effort for lenders to collect payment for a debt.
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 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 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.
A copy of this letter needs to be sent to each credit bureau. When the bureaus get a valid dispute letter they must 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 debt is verified then a credit repair service can really be helpful. They can use advanced dispute techniques such as; debt validation, escalated dispute information requests and creditor direct intervention to remove a negative mark.
What is a collection?
A collection typically occurs after 6 months of delinquency. It is a last effort for lenders to collect payment for a debt.
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 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:
How you can remove a negative mark from lvnv funding a common collection agency or to read an article about what is a charge off visit us.
posted by Credit Counseling at
8:30 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home