How to Remove Collection Accounts From Your Credit Report

Collection accounts can remain on your credit report for 7 years from the date of the initial missed payment that led to the collection (the original delinquency date).

If you haven't paid your collection account yet, negotiate with the collection agency. Let them know that you plan to pay them off. You can try to negotiate less than the full amount if you want. The important thing is getting them to agree to remove the item from your credit report. It's wise to get this agreement in writing before submitting your payment.

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If you've paid a collection account in full and the item remains on your report. You will want to dispute the item with the credit bureaus by mail. When a collection account is paid in full, it will be marked "paid collection" on the credit report. It is NOT removed from your report and is still considered a negative account. For this reason, you want to have the account removed from your credit report.

How to Remove Collection Accounts From Your Credit Report

Always remember that the burden of proof is on the credit bureaus. You have nothing to prove to them. They have to prove to YOU that the account is yours. Simply dispute by stating something like "Please provide documentation that the following account belongs on my credit report and that my rights have not been violated; otherwise please delete this damaging data immediately." That's all you need to say. One line. The credit bureaus then must conduct an investigation; they have 30 days to do so. If the collection agency can't verify the account (most of the time they can't), then they must remove the collection account from your credit report.

How to Remove Collection Accounts From Your Credit Report

Check Credit Report - Government Mandated Free Credit Report

The ability to check your credit report online has become easier than ever in recent years. The government has mandated free credit report information to be viewable to the average citizen at least once per calendar year. This has proven to be a major asset for many individuals that never truly understood their financial history and how their three digit scores were determined.

With access to their reports more people than ever are finding ways to repair their finances and strive toward solvency. Unfortunately, with the ease of this access some individuals have fallen prey to online scam companies that tout themselves as a reporting agency but really spend their time trying to lure in unsuspecting individuals. These poor unfortunate souls will avail themselves of seemingly solid financial advice or even accept a loan that seems to be in good faith. Then not long after it is accepted the interest rates rise dramatically or a large number of hidden fees are found. The individual that borrowed this money is now in worse shape than ever financially.

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However, on a more fortunate level of business interaction there are also honest companies that specialize in helping an individual discover their rating and scores. These companies often offer free trials on a membership basis. This will allow an individual to view their credit report and get their scores as often as they like during this period for free. If they enjoy the easy access to their information they can simply keep working with the service. If they do not feel the need to continue with them then they may simply cancel their membership subscription before the trial period runs out. These sorts of companies also offer financial advice and occasionally they will negotiate debt settlements and offer consolidation loans as well. Unlike the scam sites these companies are known for their integrity and generally do not have hidden fees or highly variable interest rates. They usually work with a set interest rate and a repayment plan for the loan that is well within reason.

Check Credit Report - Government Mandated Free Credit Report

No matter what the reason an individual might have to search for their rating and scores they will find it much easier to do online. There is no need to spend time in a long bank line or have to deal with snide financial services in person. The entire process of acquiring your information happens online and in the comfort of your own home.

Check Credit Report - Government Mandated Free Credit Report

Disputing Your Credit Report - How Can I Remove Negative Items From My Credit Report?

Disputing your credit report can be a time consuming process. Using the dispute process to remove negative items off of your credit report can be frustrating. Nevertheless, it is one of the best ways to get negative information off of your credit report. Starting with the basic dispute process is quite often the fastest and most effective way of disputing your credit report.

Now that you have your reports in front of you, make sure to check the personal information section and check that all entries are correct. Check your name, date of birth, present, and past address, current and past employer, and social security number. After you have verified your basic information, you should scan all three reports and circle or highlight any errors you find. Scroll down each report and check for any errors or discrepancies regarding accounts, or inquiries.

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Here are some important red flags to look for:

Disputing Your Credit Report - How Can I Remove Negative Items From My Credit Report?

When disputing your credit report look for discrepancies regarding accounts and inquiries:

Unauthorized users Customers listed as deceased Former spouse name Negative accounts from your divorce Negative co-signed accounts Unauthorized inquires Illegally re-aged collection accounts (which report an incorrect last date of activity) Foreclosure attempts Consumer credit counseling loan indications When disputing your credit report look for Discrepancies regarding balances and accounts Balances incorrect Credit limits listed incorrectly Duplicate collections Accounts listed incorrectly Credit lines not listed Paid accounts still showing that you owe Closed accounts shown open Closed accounts should say closed by consumer and not closed by the creditor

When disputing your credit report look for Discrepancies regarding negative trade lines:

Late payments, 30, 90, and 120 days Collections Charge offs Tax liens Judgments Debt consolidation marks Bankruptcies not saying withdrawn or dismissed Repossession indication when it should say voluntary surrendered

Now, before you start trying to repair your credit report, let me tell you what the law says about disputing your report.

The Fair Credit Reporting Act regulates how the credit bureaus handle your report under § 611. For procedures in cases of disputed accuracy [15 U.S.C. § 1681i], the law states that if you dispute the accuracy of any item or data in your reports, the credit bureau shall conduct a reasonable investigation within 30 days to determine if the challenged item is correct.

After the 30 days have expired, if the credit bureau has not verified or completed the investigation, the disputed item must be deleted. There you go, that is the law, and you will use it to start your dispute process.

When disputing your credit report, you can write your own dispute letter or use a standard dispute letter that you find on the internet. If you decide to write the letters, you must include your full name, date of birth, address, social security number, the items you're disputing, the reason you are disputing them and your signature at the bottom. Once you have your letter s are ready, send them to the following agencies:

Experian NCAC PO BOX 9701 ALLEN TX, 75013

Equifax PO BOX 105518 ATLANTA GA, 30348

Trans Union PO BOX 2000 CHESTER PA 19022

Disputing Your Credit Report - How Can I Remove Negative Items From My Credit Report?

How Does Foreclosure Impact Your Credit Report?

How does a foreclosure effect your credit report is a perplexing question. This is because Fair-Isaac Company, who started the credit scoring system, will not share this information. What complicates the issue even further is that all the credit information reported is calculated into the individuals' credit score as it occurs. The credit score is updated instantly whenever there is an inquiry, otherwise it sits waiting for some person or institution to access it.

To get negative information on your credit report concerning a foreclosure, the homeowner must not have paid his mortgage or loan payment for 30 to 90 days. So to begin with, his score is decreased by the late payments. Usually, the homeowner is also late on other bills because of his financial crisis and has additional late payments, collections, or judgments. So if he had his credit pulled on a specific date before he started his personal financial decline, he would have seen one score (i.e. 680). The next time he pulls his credit report, after he has been served with his foreclosure notice or even after the foreclosure is completed; he sees his new score (i.e. 450). He is probably shocked and dismayed, especially when he realizes how much more interest the lenders want because of his low credit score. For example, an auto loan to an "A+" credit customer could be 0% interest while for a "D" credit customer, it could be 11% or higher. What does that actually mean? It means that the "D" credit individual will pay ,500 to ,000 more for the same car as the "A" credit buyer! The collateral for the loan is the same car, so the "D" credit person is unfairly penalized for his credit situation.

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Your credit score "before and after" the foreclosure is no conclusive answer as to how much the foreclosure has hurt your credit report, but it is an indication. Homeowners tend to believe that once they have had a foreclosure they can never buy a home again. This is absolutely untrue, as we see people buying homes within a year of losing their previous home. They will have to pay a higher interest rate unless their down payment is substantial, usually 15% to 20% of the purchase price. But this sizable down payment is often obtained from friends or family members and carried as a second lien on the property. Also the credit score reduction for the foreclosure is reduced as time goes on, until it settles at a minimal number after a few years.

How Does Foreclosure Impact Your Credit Report?

The foreclosure's immediate impact on an individual's credit report is estimated to be about 100 to 140 points. The bigger impact is from the late payments on other bills which quickly mount up. Doing a "deed in Lieu of Foreclosure" with the lender reports the same as a foreclosure. It is generally believed that a foreclosure stays on your credit report for seven years, but it can stay on longer because it is part of the public record, which could be open for 20 years. So make certain when you do your credit restoration you have it taken off, if it isn't removed automatically.

How Does Foreclosure Impact Your Credit Report?