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.
It’s a common question with a complex answer. The good news is that you can, in fact, get collections removed from your credit report. But it’s not always simple, and it varies according to the particulars of each case.
Why are collections on your credit report bad?
Collections are bad news for your credit score. When a debt goes unpaid, it can be sent to collections which means a collection agency will try to collect the debt from you. This can have a significant negative impact on your credit score, making it harder to get approved for loans, credit cards, and other forms of credit.
How to remove collections from your credit report
There are a few different ways to remove collections from your credit report. Here are the most common methods:
- Dispute inaccurate information: If you believe that the information on your credit report is inaccurate, you can dispute it with the credit bureau. This is the most common way to remove collections from your credit report, and it is often successful.
- Pay for delete: This is a controversial method, but it can be effective. With a pay for delete, you agree to pay the debt in exchange for the collection agency removing it from your credit report. However, it is important to note that this is not always legal, and it can be risky.
- Goodwill deletion: This is a long shot, but it is worth trying. You can write a letter to the collection agency or the original creditor asking them to remove the collection from your credit report as a goodwill gesture. This is most likely to be successful if you have a good payment history with the creditor and if you have a compelling reason for why the debt went unpaid.
- Wait it out: Collections will eventually fall off your credit report after seven years. However, this is a long time to wait, and it can still have a negative impact on your credit score in the meantime.
Which method is right for you?
The best method for removing collections from your credit report depends on your specific circumstances. If you believe that the information on your credit report is inaccurate, you should dispute it with the credit bureau. If you are willing to pay the debt, you can try a pay for delete. And if you have a good payment history and a compelling reason for why the debt went unpaid, you can try a goodwill deletion.
What if I can’t remove the collections from my credit report?
If you are unable to remove the collections from your credit report, there are still a few things you can do to improve your credit score. You can try to pay down other debts, keep your credit utilization low, and avoid opening new credit accounts. You can also try to get a secured credit card, which can help you build credit history.
Although it can be difficult, it is possible to have collections removed from your credit report. If you are struggling with collections, don’t give up. There are several approaches you can take, and doing so might allow you to raise your credit score.
Frequently Asked Questions
How long do collections stay on your credit report?
After the date of your first late payment, collections are listed on your credit report for seven years.
Can I remove collections from my credit report myself?
Yes, you can dispute collections with the credit bureaus and have them removed from your credit report on your own. You can also try a pay for delete or a goodwill deletion.
How much does it cost to remove collections from your credit report?
The cost of removing collections from your credit report varies depending on the method you use. Disputing collections with the credit bureaus is free, but pay for delete and goodwill deletions can cost money.
What is the best way to remove collections from my credit report?
The best way to remove collections from your credit report depends on your specific circumstances. If you believe that the information on your credit report is inaccurate, you should dispute it with the credit bureau. If you are willing to pay the debt, you can try a pay for delete. And if you have a good payment history and a compelling reason for why the debt went unpaid, you can try a goodwill deletion
What if I can’t remove the collections from my credit report?
If you are unable to remove the collections from your credit report, there are still a few things you can do to improve your credit score. You can try to pay down other debts, keep your credit utilization low, and avoid opening new credit accounts. You can also try to get a secured credit card, which can help you build credit history
How long does a collection stay on your credit report?
Negative credit events can stay on your credit report for years. Your credit history will show an account that has been sent to collections for up to seven years following the date of your first late payment. Your credit score will rise when you successfully pay off collections, but the closed collection account will remain on your report for seven years until it expires. Despite being repaid, that collection activity will still impact your credit score.
How to remove inaccurate collection information
Equifax, Experian, and TransUnion, the three major credit bureaus, will delete collection information if you can demonstrate that it is inaccurate. Factual errors do occasionally appear in credit reports; however, while some are more minor, a major error, such as a misreported collection account, can seriously lower your score.
There may be a mistake on your credit report if you’ve noticed a decline in your credit score or if you were unexpectedly turned down for a new credit account. Although there are many good reasons for your credit score to decrease, mistakes can also be the cause.
You can check all three of your credit reports for free at AnnualCreditReport.com once per year — and there are options for checking them more regularly if you’d like. You’ll want to review a copy of your credit report from each bureau, as they probably won’t be exactly the same. Just because there’s an error on one report doesn’t mean that there’s one on other reports.
Note: Customers are permitted to check their credit reports once a week with all three credit bureaus due to the particular difficulties brought about by the COVID-19 pandemic. Weekly access will continue until the end of 2023.
Credit report errors are common and can be disputed. You may find a few possible issues beyond inaccurate collection information, including:
- Incorrect biographical information, like a phone number or address
- Accounts belonging to someone else with the same name
- Accounts that are wrongly shown as late or delinquent
- Accounts with an incorrect credit limit or current balance
- Duplicate information or accounts that appear multiple times
Credit report errors regarding collections could appear in a few different ways. Maybe the date on the collection account was reported erroneously; if that hadn’t happened, it might have expired by now or a later date could have negatively impacted your credit report for a longer period of time. Even though the account appears on your credit report, it’s possible that you never had it sent to collections.
Once you’ve identified a credit reporting error, you should write a letter to each credit bureau. You can file a dispute by outlining the issue in detail, supplying proof to back up your assertion, and asking the bureau to fix the mistake. The Fair Credit Reporting Act (FCRA) requires consumer-reporting agencies to investigate credit report disputes and respond to claims.
The Consumer Financial Protection Bureau (CFPB) suggests that you include your contact information, clear identification of each mistake, including account numbers or dates, explanations for why you’re disputing the information and a request to remove or correct the error. The CFPB has a sample letter for credit report disputes available to get you started.
You can file claims online, by phone or by mail. Be sure to submit copies of the dispute to each credit bureau reporting the error.
| Contact information | Equifax | Experian | TransUnion |
|---|---|---|---|
| Online | equifax.com/personal/disputes | experian.com/disputes | transunion.com/credit-disputes/dispute-your-credit |
| Phone | (800) 864-2978 | (866) 200-6020 | (800) 916-8800 |
| Address | P.O. Box 740256 Atlanta, GA 30348 | P.O. Box 4500 Allen, TX 75013 | P.O. Box 2000 Chester, PA 19016 |