Many wonder how to remove collections from a credit report. This is particularly true in view of infomercials promising to fix your credit. Although most of those claims are generally unrealistic, you can take measures to remove collections from your credit report, depending on the type of collection.
Things you’ll need:
- Credit report
- Certified mail card
- Review your credit report. If you find any collections that are not yours, it’s most likely the result of identity theft. Contact the creditor immediately. Expect the creditor to conduct an investigation, which may take some time. Once the creditor determines that the debt is not yours, the company will contact the credit bureau and report the correct information.
- Contact the credit if it’s your own debt. Look at your finances and determine if you can pay the minimum. Credit card companies will often work with you if you can pay the minimum and set up a monthly payment plan, normally lower than what you were paying prior to collection. Your credit report will still show a collection history, but as long as you stick to the payment plan, it will show an out-of-collection status from that point forward.
- Settle the account. If your debt is six months old or older and it’s not feasible to bring it current, make a settlement offer. Request that the creditor report the debt as paid in full to the credit bureaus.
- Request a written agreement. Once you reach an agreement with your creditor, do not agree to an automatic debit from your account. Do not send a check or money order until the creditor sends you a written agreement outlining the terms.
- Send a certified letter. Once you receive the written agreement, write a letter outlining the terms. Remind then that cashing the check constitutes their acceptance of the amount as payment in full. Check the return-receipt option on the slip, and keep a copy of the letter for your self. Once a creditor reports a debt as paid in full, it is taken out of collection status and your credit score will most likely improve.
If you’ve had legitimate debts placed in collections, there isn’t much you can do to remove the collection history from your credit report. However, you can have it taken out of collection status if you bring the account current or reach a settlement with the creditor.