Collections should be removed from a credit report.
Only questionable or invalid collections are allowed to be removed from your credit report.You can either remove collection accounts from your credit report by writing a letter of good will to the creditor, or you can file a dispute with the credit bureau.Follow up with the credit bureau or creditor after you file a dispute.You can always file a complaint if you have any issues with how the investigation was handled.Most negative information on your credit report will fall off after seven years.
Step 1: Obtain credit reports from all three agencies.
You can get a free copy of your credit report from any of the credit agencies.You can get a free copy of your credit report if you visit the website of each agency.For a fee of $40, you can request a three in one credit report.If you have used up your free reports for the year, you will have to pay a fee to request your credit report.
Step 2: There are account-related errors.
There are errors on your credit report.Late payments that are more than seven years old, a credit card that doesn't belong to you, or an account that was closed by you are all account related errors.According to federal law, collection accounts can be reported for up to seven and a half years from the date you first fell behind.For up to seven and a half years, collection accounts that are paid may appear on your credit report.
Step 3: Derogative mark errors can be identified.
Some common derogatory mark errors are paid collection accounts that are showing as uncollectible, a paid tax lien that is more than seven years past your date of payment, creditor lawsuits, and an account that was discharged in bankruptcy but is still showing up as active and with a balance.
Step 4: Personal information errors are highlighted.
Personal information errors include your name being listed wrong on the account, addresses that you never lived at or used as a mailing address, and inaccurate employer information.There are disputes that are not subject to investigation.These disputes are information that identifies you, such as your name, date of birth, Social Security number, or address; the identity of past or present employers; requests for a consumer report; and information related to active duty or fraud alert.
Step 5: Write a letter of goodwill.
If the negative mark on your report was caused by unusual circumstances or temporary hardship, you may want to try writing a letter of goodwill, asking them to remove the mark.For instance, if your spouse was seriously injured and you had to quit your job to care for them and fell behind in your payments, the letter should outline the personal hardship.The issue and reason for missing your payment should be concisely described in the letter.Take responsibility for what happened, and request that the mark be removed from your credit report.If you made payments on time before or during hardship, point this out.Up until this unforeseen event, my credit history with you was clean and I always paid on time.I am not proud of falling behind on my payments, but I would be very grateful if you could make an adjustment or remove the lateness.If the creditor is unwilling to remove the negative report for goodwill, then offer to pay the debt in a lump sum upfront.Debts that have been technically satisfied should be removed.The individual debts should be removed from the credit report in order to avoid a double dip consequence.It's rare to strike a deal with a creditor and rarer with collection agencies.Collection agencies can't remove negative information from your credit report.
Step 6: There is a dispute with the credit bureau.
If you want to file a dispute with the credit bureau, you can either do it online or over the phone.The most convenient way to file a dispute is through the credit reporting agency website.There will most likely be a delay in getting the issue resolved if the credit bureau needs to contact the creditor to confirm and check the information you are disputing.You can file a dispute with the creditor.In regards to the error and evidence that proves it is a mistake, give specific information.If you are shown to have made a late payment on a loan but your payment was on time, you should include a copy of your credit report with the error circled in red, as well as copies of documents that prove you made the payments.The matter should be investigated and removed from the report.
Step 7: You can file a dispute with the creditor.
If the negative mark on your credit was made in error, you can reach out to the creditor directly and ask them to correct it by providing the relevant evidence.The disadvantage of filing a dispute with the creditor is that they only accept mail disputes.You will need to write a letter.The most important information should be in the beginning of the letter.Make it very clear in the beginning that you are contesting multiple items.In your letter you should include your full name and the account you are referring to, as well as a copy of your credit report with the errors circled in red, and original documents that prove that you paid an account on time.If the year you opened a loan is being reported wrong, you should include a copy of an original document that shows the correct year.
Step 8: You can file a dispute with the credit bureau.
You can file a dispute with both the credit reporting agency and the creditor.All the important information and documents should be sent in a written letter to the agency and the creditor.Remember to keep the original documents for yourself and only send copies to the agencies.
Step 9: Make sure the records of the creditor are up to date.
If the dispute is resolved, the credit bureau must update their records.The credit bureau must be notified if the creditor resolves the problem.If your credit report was changed, the credit bureau must give you a free copy.The credit bureau is required to investigate your dispute within 30 to 45 days of receiving the notification of the dispute, but disputes are usually resolved within 14 days.
Step 10: Notices should be sent.
Notices of correction to your credit report can be sent to anyone who has received it in the last six months or two years for employers.You can add information about your dispute to your credit report if you disagree with the way the issue was resolved.If the dispute did not go your way, you should write a statement about it.If you filed your dispute through the creditor, this doesn't apply.
Step 11: It's a good idea to file a complaint.
The dispute took too long, you were not treated well during the whole process, or there is still a valid error on your report are reasons to file a complaint.If this applies to you, you can file a complaint with the Consumer Financial Protection Bureau.Explain in detail why you think you were treated unfairly in your complaint.There is an online option for you to file a complaint.