Let me ask you a simple question? Do you know what a collection account really is? Well It’s a negative trade line on your credit report that was reported by a collection agency. These accounts normally appear on your credit report because the consumer refused to pay a bill owed to a financial or other institution. Paid and unpaid collection accounts will stay on your credit report seven years from the date the account went delinquent with the original owner.
Tactic one on how to dispute collections
If the account is yours, and the collection is less than two years old, you can try the basic dispute strategies mentioned in chapter two. If you are unsuccessful in challenging it through the credit bureau, send a cease and desist letter (instructing the collection agency not to contact you in any form) to the collection agency and wait for the account to go back to the original creditor. When it’s with the creditor, try to negotiate the debt for pennies on the dollar only if the creditor agrees to delete the negative item from your credit report. If they don’t agree to delete the item, try to get a paid as agreed indication on your report.
Tactic two on how to dispute collections
If you want your credit score to go up and the paid collection is less than two years, try to get it deleted by using the basic dispute method. When you dispute a satisfied collection, most collectors will not respond to the creditor bureau when they try to validate the debt because the account is already paid, and they are too busy handling other unpaid accounts. The reason you want to remove the collection if it’s less than two years is because negative accounts less than two years brings your score down further than accounts past two years. While disputing with the credit bureau, you can also send a good will letter to the creditor asking them to remove the collection from your credit report. Sometimes this method works if you word the letter right. Last, if you don’t have the money to pay and no time or patience to dispute the item month after month, you can wait for the item to fall of off your credit report which is seven years from the date it went delinquent.
As you can see with a little knowledge and know how, on how to dispute collections, you can get these negative items off of your credit report. You must have patience when dealing with collection accounts because sometimes they are easy to come off and other times they are hard. Now that you have empowered yourself with new techniques, go out there and get those collection accounts removed.