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.
A dispute letter must be sent to each bureau. In your letter you have to identify the mark you are disputing and why it is inaccurate and should be erased from your report.
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.
It is common for investigations to result in the deletion of a mark. This is because most lenders and collection agencies are unwilling to spend the resources verifying uncollectible debts.
If your dispute is verified then having a credit repair service can be very beneficial. They can use advanced dispute techniques to remove a bad credit item. These techniques include; debt validation, escalated dispute information requests, and creditor direct intervention.
What is a collection?
A collection will occur approximately after 6 months of delinquency. It is a lenders last resort to recover payment.
Most lenders have some form of in house collection. However many also will use an outside collection agency and/or sell your account.
These agencies will purchase your debt for a fraction of the balance or they will work together with a lender. This means they will collect on behalf of the lender and receive a percentage of all the money they collect.
You should know that if you just pay a collection then the mark will remain on your credit report. It will change the status of the mark but it will still be seen as a negative item by potential lenders.
In sum you can remove collections from your credit report. You do not have to live with bad credit items for 7 years.
A dispute letter must be sent to each bureau. In your letter you have to identify the mark you are disputing and why it is inaccurate and should be erased from your report.
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.
It is common for investigations to result in the deletion of a mark. This is because most lenders and collection agencies are unwilling to spend the resources verifying uncollectible debts.
If your dispute is verified then having a credit repair service can be very beneficial. They can use advanced dispute techniques to remove a bad credit item. These techniques include; debt validation, escalated dispute information requests, and creditor direct intervention.
What is a collection?
A collection will occur approximately after 6 months of delinquency. It is a lenders last resort to recover payment.
Most lenders have some form of in house collection. However many also will use an outside collection agency and/or sell your account.
These agencies will purchase your debt for a fraction of the balance or they will work together with a lender. This means they will collect on behalf of the lender and receive a percentage of all the money they collect.
You should know that if you just pay a collection then the mark will remain on your credit report. It will change the status of the mark but it will still be seen as a negative item by potential lenders.
In sum you can remove collections from your credit report. You do not have to live with bad credit items for 7 years.
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For more tips on credit repair or for a free dispute letter to dispute bad credit on your report or to read a review of lexington law a suggested credit repair service visit us.
posted by Credit Counseling at
2:35 PM
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