When a debt has gone into collections, you’d probably know you’ve run into financial difficulties. Even after you pay off the debt, having collections on your credit report can negatively impact your credit score for a considerable amount of time. Paying off debt is the most pressing issue, though.
Successfully disputing inaccurate information is the only surefire way to get collections removed from your credit report. You can ask your creditor for a goodwill deletion if you’ve paid off a debt but the collection account is still listed on your credit report. However, there’s no assurance they will comply with your request.
Yes, a paid collection can be removed from your credit report, but it’s not guaranteed There are two main ways to do this:
1, Ask for a goodwill deletion
To do this, send a letter to the collection agency outlining your situation and your desire to have the debt cancelled. Although there is no assurance that your request will be granted, it doesn’t hurt to ask
2. Dispute the collection with the credit bureaus
You can dispute the collection with the credit bureaus if you think it is unreliable or lacking. If they find the claim to be false, they will look into it and remove the collection.
Here are some additional things to keep in mind:
- It can take time to remove a collection from your credit report. Even if you are successful in getting it removed, it may not happen immediately.
- The collection may still appear on your credit report for a while, even if it has been removed. This is because it can take time for the credit bureaus to update their records.
- Once a collection is removed from your credit report, it cannot be added back on. This is a one-time opportunity, so make sure you are prepared to follow through with the process.
How to Ask for a Goodwill Deletion
To ask for a goodwill deletion, you will need to write a letter to the collection agency. In your letter, you should include the following information:
- Your name and contact information
- The account number of the collection
- The date the debt was paid
- An explanation of why you would like the collection removed
- A request that the collection be removed from your credit report
Here is a sample letter that you can use as a starting point:
[Your Name][Your Address][Your City, State, Zip Code][Your Email Address][Your Phone Number][Date][Collection Agency Name][Collection Agency Address][Collection Agency City, State, Zip Code]Dear [Collection Agency Name],I am writing to request a goodwill deletion of the collection account associated with [account number]. I paid this debt in full on [date].I understand that I was responsible for paying this debt, and I apologize for any inconvenience my late payment may have caused. However, I am now in a good financial position and have been making all of my payments on time for the past [number] months.I am requesting that you remove this collection from my credit report as a goodwill gesture. This would help me to improve my credit score and qualify for better interest rates on loans and credit cards.Thank you for your time and consideration.Sincerely,[Your Signature][Your Typed Name]How to Dispute a Collection with the Credit Bureaus
You must adhere to the guidelines on the credit bureaus’ websites in order to contest a collection with them. To substantiate your claim, you will need to submit supporting documentation, such as a copy of your payment history or a letter from the collection agency confirming the debt’s payment.
Here are the websites for the three major credit bureaus:
- Equifax: https://www.equifax.com/personal/disputes/
- Experian: https://www.experian.com/disputes/
- TransUnion: https://www.transunion.com/credit-disputes/dispute-your-credit
Additional Resources
- Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/ask-cfpb/what-is-a-goodwill-letter-en-302/
- Federal Trade Commission (FTC): https://consumer.ftc.gov/articles/disputing-errors-your-credit-reports
Frequently Asked Questions
What is the duration required for deleting a collection from my credit report?
A: It can take up to 30 days for the credit bureaus to investigate a dispute and remove a collection from your credit report.
Q: What if the collection agency refuses to remove the collection from my credit report?
A: You can file a complaint with the CFPB or the FTC.
Q: What if I can’t afford to pay the collection?
A: You may be able to negotiate a settlement with the collection agency. You can also try to get the collection removed from your credit report by disputing it with the credit bureaus.
Q: What if the collection is inaccurate?
A: You can dispute the collection with the credit bureaus. You will need to provide documentation to support your claim, such as a copy of your payment history or a letter from the collection agency stating that the debt has been paid.
Q: What if the collection is more than seven years old?
A: Collections can stay on your credit report for up to seven years from the date of the first missed payment. After seven years, the collection will automatically fall off your credit report.
If you have a paid collection on your credit report, there are a few things you can do to try to get it removed. You can ask for a goodwill deletion, dispute the collection with the credit bureaus, or wait for it to fall off your credit report after seven years.
How collection accounts impact your credit score
A credit card or personal loan that you don’t make enough payments on may be sent to collections. Once your account is past due, your creditor may hire a debt collection agency to pursue repayment. Receiving a debt that has been sent to collections lowers your credit score because collection accounts appear on your credit report in addition to your history of late payments.
How to remove paid collections from credit report
Once you’ve paid off an account in collections, it will eventually fall off your credit report. If you’d like to expedite the process, you can request a goodwill removal. Your original creditor may choose to remove a paid collection account; they are not required to grant your request. Some creditors aren’t able to delete collections from a credit report at all.
But it doesn’t hurt to ask. If you were truthful about your financial difficulties, upfront about your debts, and made sincere attempts to pay them back as soon as you could, those creditors might be more willing to have the incident removed from your credit record.
Before sending a letter, you’ll want to ensure that the debt has indeed been paid. For an unpaid debt or an active collection account, you cannot receive a goodwill deletion because your creditor wants the money you owe them. To begin with, make sure the debt has been settled and the account has been closed by getting in touch with your creditor. You can also check your credit report to see if the information still appears.
Once the debt has been paid off, send a letter asking for the closed collection account to be deleted from your credit report under the goodwill deletion policy. Your former creditors may agree to cancel the collection account if you provide them with proof of your creditworthiness and an explanation of why you fell behind on payments. Remember that your former creditors are under no legal obligation to honor your request.
It’s not a good idea to request a removal from a creditor while your debt remains unpaid. When trying to settle a debt, some debtors send in “pay to delete” letters in the hopes that the creditor would agree to remove the collection account from your credit report in exchange for payment of the debt. This strategy rarely works and may not even be legal under the FCRA.