Collection accounts can remain on your credit report for 7 years from the date of the initial missed payment that led to the collection (the original delinquency date).
If you haven't paid your collection account yet, negotiate with the collection agency. Let them know that you plan to pay them off. You can try to negotiate less than the full amount if you want. The important thing is getting them to agree to remove the item from your credit report. It’s wise to get this agreement in writing before submitting your payment.
If you've paid a collection account in full and the item remains on your report. You will want to dispute the item with the credit bureaus by mail. When a collection account is paid in full, it will be marked "paid collection" on the credit report. It is NOT removed from your report and is still considered a negative account. For this reason, you want to have the account removed from your credit report.
Always remember that the burden of proof is on the credit bureaus. You have nothing to prove to them. They have to prove to YOU that the account is yours. Simply dispute by stating something like "Please provide documentation that the following account belongs on my credit report and that my rights have not been violated; otherwise please delete this damaging data immediately." That’s all you need to say. One line. The credit bureaus then must conduct an investigation; they have 30 days to do so. If the collection agency can’t verify the account (most of the time they can’t), then they must remove the collection account from your credit report.
For more information on Removing Collection Accounts and other negative items from your credit reports, visit AAACreditGuide.com, the Free Credit Repair Help site!
Article Source: http://EzineArticles.com/?expert=Chane_Steiner
1 comment:
Please be aware that just disputing items can also hurt your chances of getting credit. Item disputes are reported, and can be a cause for credit denial...especially with major purchases like cars or homes. The disputes will red flag you even if it was a legitimate dispute, and even more so if you have many showing. A credit granting agency may assume you may cut and run, then try to dispute their legitimate claim. Removing a dispute from your report requires a letter to the reporting bureau in question explaining the reason to close and remove the dispute, it will not "time off" on it's own.
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