No one wants to have a collection account appearing on their credit reports as we all know it is a big hit to our credit score.
Here are a few tips for you on ways remove a report of collections from your credit report. First you need to have all the documentation you can find on the account in question including a copy of your credit report itself. You can get this for free from each of the 3 bureaus at no cost (you can only do this once a year).
How to Pay for Removal of Collection Accounts
The ‘pay for delete’ letter is one you issue to the collection agency before you pay them asking them to remove the collection account from all credit reports in exchange for your payment.
If you have a legitimate issue with the collection report, then it is more likely you can get it removed if you pay the bill in question. For example, this may be due to lack of performance for services you had done.
Goodwill’ Deletions
It is possible if you have excellent credit history and you just made a mistake in missing a payment, you can write to the original company you owed money to and request they remove the collection report.
Paying Off Collections
Well, just paying what is owed won’t help your credit score right away. But, as will all credit information, the older it gets the less impact it has on your score.
The BEST way to handle your credit?
Start adding new, positive credit references to offset any negative information. Over time this is very successful in improving your scores.
VantageScore 3.0 & FICO 9: Hope for Consumers?
VantageScore 3.0 and FICO 9 are credit scoring systems that use very relevant data from the 3 major credit bureaus to calculate your credit score.
The newer FICO 9 model ignores collection accounts where the original balance is less than $100. Similarly, the new VantageScore 3.0 model ignores all paid collections accounts, as well as any collections, paid or unpaid, that are under $250.
Read more- Can I Remove Collection Accounts from My Credit Reports?
Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business.
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