How You Can Remove Collections From Your Credit Report
You will have to dispute the collection to have the credit bureaus remove it from your credit report. You must file a dispute directly with the bureaus.
You file a dispute by creating a dispute letter. In this letter you must identify the mark being disputed and provide a reason as to why it is inaccurate and should be removed.
You will have to send a copy of this letter to each credit bureau. Upon receipt of your letter the bureaus will conduct an investigation into the dispute.
It is common for investigations to result in the deletion of a mark. This is because most lenders and collection agencies are unwilling to spend the resources verifying uncollectible debts.
If your debt is verified then a credit repair service can really be helpful. They can use advanced dispute techniques such as; debt validation, escalated dispute information requests and creditor direct intervention to remove a negative mark.
What is a collection?
A collection typically occurs after 6 months of delinquency. It is a last effort for lenders to collect payment for a debt.
It is common for lenders to have an in house collection agency. However many also outsource and/or sell the delinquent debt.
These agencies will purchase your debt for a fraction of the balance or they will work together with a lender. This means they will collect on behalf of the lender and receive a percentage of all the money they collect.
You should know that if you just pay a collection then the mark will remain on your credit report. It will change the status of the mark but it will still be seen as a negative item by potential lenders.
In sum you can remove collections from your credit report. You do not have to live with bad credit items for 7 years.