Your credit score is the foundation for you when you are looking to move forward with financial Milestones. Whether this may be a house, car, or even a credit loan your credit score is what matters. If you’ve missed payments, not too many payments chances are the lender I sent it off to collections. You may not think much of it, and probably dodge all the calls but it does heavily impact your credit score. Having a debt collection on your credit report remains there for up to 7 years which in turn will heavily reduce your credit score, hindering your ability to get the loan, or mortgage you’re looking for.
We want to cover some ways what you can implement to have any collection entry on your credit report removed. But before we do that we want to make sure that you fully understand what a debt collection entry is and how it affects your credit score. Let’s get started.
A collection on your credit report is fairly straightforward, it comes in many different forms of quite frankly it goes unnoticed. An unpaid cell phone bill, unpaid TV bill, medical bills you name it, anything of such sort would be considered a debt collection by the company. Most of the times you have about a 100 to 150 days before that that is reported to the credit bureaus. Once it’s been reported it does negatively affect your credit report.
We are going to share some tactics you can use I can help her move at that collection entry on your credit report.
This is pretty straightforward if you know that this isn’t your debt that’s reflected on your credit report you have every right to dispute it. What you need to do is provide evidence that you’ve never been associated with this type of collection, and if successful the creditors will have it removed off your credit report.
What you should be doing providing a detailed letter explaining why you’re disputing it. You should have everything outline with proof, account numbers and anything you can think of. Once you have a solid foundation there are no worries, because at that point the creditors would have the entry removed.
People make mistakes, and they’re punished for it. Even after the most perfect person, it deals with on-time payments and anything you can think that affects your credit, there’s Room for error. You should send a letter explaining how you pay off the deb. It seems too good to be true, but most of the times it does work. Creditors are not as stingy as many people think they are, they’re willing to help as long as you execute the right process. So explaining why you were unable to pay the debt is essential to the goodwill letter.
Pay for Delete Method
This matter is fairly simple and quite frankly it’s pretty successful. What you do is write a letter to the Creditor explaining that in exchange for you paying off the account, you’re kindly asking them to remove the negative off your credit report. Most of the time it doesn’t work but there are some little nuances you should avoid before you do so.
Firstly you should never negotiate it’s over the phone and always have it in writing. If you have it in writing there’s solid proof but the Creditor has agreed to remove the negative entry in exchange for payment.
Indian sense if the Creditor was unable to remove the negative entry off your credit report, you should call the credit bureau and let them know that you’ve made an arrangement with a creditor for a pay for delete. Provide them with the written proof so that way I can be removed.
Sometimes all of this can be a little bit tricky for anyone who likes to avoid conflict. So the best course of action is a higher credit repair professional who’s willing to go the extra mile to make sure that your credit score is safe from any negative entries. We recommend that you call one of our local professionals to help you out.
Wait it out
If all else fails your last resort may be waiting it out. Waiting 7 years for the collections entry to be removed off your credit reports seems extremely long. Once you have cleared the debt owing you can just wait for it to fall off your report.
No matter the circumstances, if you’re able to dispute and have the entry removed or your left to wait seven years don’t let that stop you from becoming responsible. We recommend that you develop a routine where you can make your payments on time so that way you are not faced with another situation where collections will be after you. Setting a pre-authorized payments on your bank account can be a great help so that way you don’t forget and all your payments on time. Not only will this help your credit score but you can use this as proof to lenders that you’re becoming more financially responsible allowing you to be entitled to credit accounts.
If you are looking to increase your credit score, contact us to have negative items off your credit report here.