Google Analytics Alternative Credit Zeal - Repair & Improve Your Credit Score With Confidence: June 2018


How to Remove Collections from a Credit Report

How to Remove Collections from a Credit ReportIt’s almost impossible to get by in our modern world without credit.

We use credit to secure credit cards, use it to alleviate our financial obligations, use it to purchase vehicles and homes, and even use it to take advantage of new financial opportunities, build businesses, and get the kind of education we need to take our lives to the next level.

Unfortunately for many, credit also has a bit of a dark side – particularly if you have been anything but ridiculously careful with your credit, your repayment history, and your credit utilization levels.

It’s very easy for just a few small bumps in the road to completely derail our finances.

According to different industry reports, the average American has to scrape and scrounge to meet a $500 emergency financial obligation, and many of them do not have the credit score necessary to get a short-term loan to flow those kinds of issues without headache or hassle.

Should your credit have a couple of collections on it already (or even just a single collections account) the odds are pretty good that you’ve watched your score go into a tailspin.

The odds are also pretty good that you’ve been told – especially by people that you trust – that there is no way to get your score backup while a collection is on your account, and that you’ll have to wait seven years (SEVEN YEARS) until that collection falls off and you can build your credit back up again.

Well, we are happy to tell you that NOTHING could be further from the truth.

Sure, you’re going to have to do a handful of very strategic, very savvy, and little-known things to unlock your credit from collections and even have these collections accounts removed from your credit score completely.

But by the time you’re done with the inside information in this quick guide you will know EXACTLY how to get collections off of your credit report so that you can begin rebuilding your financial life ASAP.

Let’s dive right in!

Is it really possible to learn how to remove collections from a credit report early?

As we highlighted above, most collections are going to stay on your credit report for upwards of seven years before they “drop off” – but there are a handful of things that can make those collections stay on your account even longer than that.

For starters, even just reaching out to a collections agency and speaking to them about your specific debt can be enough to reset the clock and start the seven year collections timer all over again. You’ll want to make sure that this isn’t EVER in approach you take (outside of a handful of times, utilizing strategies we highlight below).

Secondly, though, is that you can actually figure out how to remove collections from a credit report early – kicking those collections off of your report as though they didn’t exist in the first place. This can happen almost immediately after you receive a collections notice, a couple of years down the line, or anywhere in between the moment that your collection shows up on your credit report and the moment it is about to fall off.

That’s what we hope to help you with below!

You’ll be able to use the specific strategies we highlighted in this quick guide to figure out how to remove collections from credit reports, but also how to remove medical collections from credit reports – collections that can feature some skyhigh debt numbers, that’s for sure.

Right out of the gate, however, it’s enough to know that it is possible to figure out how to remove paid collections from a credit report. You’ll be able to move through this process with a lot less headache and hassle than you ever expected, too.

Dispute your debt

The first tool that you have in your arsenal for removing debt collector accounts from your credit report is a simple dispute, something that you can process all on your own with about five minutes of your time.

All you have to do is look up your credit report (you can do so using any of the major credit bureaus), find a debt collections account on your credit score, and simply use the credit report dispute tools that are built right into these reporting agencies.

Most people on to the impression that they are only ever going to be able to dispute this debt if it is in some way erroneous, but that’s not exactly the entire truth. According to the law, you’ll be able to dispute debts even if you do believe that they are legitimate yours but if you feel that the debt collection agency isn’t legally able to collect from you themselves.

This spends things into a debt validation process. A debt collector has to then prove that YOU personally all the debt that they are looking for, and it’s not at all uncommon for their records to be incomplete. If they cannot prove within 30 days that you personally are responsible for the debt that they are trying to collect, they must drop the collection from your account and your credit score completely.

Dispute your debt whenever collection agents sell it off

Every six months or so, collection accounts are sold to other debt collectors that are looking to discharge the debt that they have been hunting.

Debts are assigned and sold to different collection agencies, and if the collection agency listed on your credit report is not be agency that is currently collecting on your debt, you’ll be able to have the collection dropped completely from your credit report.

It’s also not a bad idea to dispute your collection account with a new debt collector immediately after the sale has been processed. As we highlighted above, paperwork and evidence that you actually on the debt is not at all uncommonly lost in the shuffle. Should they lose your documentation, or not be able to furnish your documentation within 30 days, the account must come off of your credit report.

Pay for Delete actually works

A lot of people are, for one reason or another, under the impression that it’s impossible to negotiate with debt collectors – or even the people that originally owned your debt to begin with.

Nothing could be further from the truth.

Obviously, you’ll first want to try to dispute any and all of the collections that you have on your account and wait the 30 days necessary for your collections agency to furnish records or not.

If the debt collection agency is able to furnish records within that 30 day block of time, you’ll then have the opportunity to offer a pay for delete agreement to these collection agencies.

This is essentially a certified letter that you’ll send to the collection agency stating that you have interest in paying on your account. Usually you’ll be able to offer a lowball figure to the debt collection agency (that has purchased your debt for pennies on the dollar, no less) if they in turn agree to delete the record of a collection off of your credit report in exchange for the payment that you are making.

If you receive an affirmative from the collection agency, make sure that they agreed to sign a copy of the letter and return it to you before you send over any payment whatsoever. This is a huge piece of the puzzle.

A lot of people take the time to negotiate these kinds of deals over the phone, mostly because collection agencies are more interested in getting as much money from you as possible.

They’ll try to push you towards a higher agreement, but because you have all of the leverage – if they won’t play ball, you could simply wait them out until the collection agency sells your debt or the seven-year trigger – you should usually be able to get them down to the number that you are comfortable with.

All the same, be sure that you never send over ANY payment until you have a signed copy of your pay for delete agreement in your possession. Without this agreement, you’ll lose all leverage, will reset your seven-year countdown, and will have to go through the entire process all over again.

Should you make your payment after receiving your signed agreement and still notice that your credit report hasn’t been adjusted after 30 days, dispute the debt, provide the credit bureau with a copy of your agreement and proof of payment, and they will personally remove the collection from your account for you.

Inquire about Goodwill Deletions

There are two different kinds of goodwill deletions that you’ll want to look into, the first having to do with the overwhelming majority of debt that you may have taken a and the second having to do with medical debt in specific.

The first type of goodwill deletions we are speaking about has to do with collection accounts that you have already paid off without realizing that you could have done a pay for delete letter and had your account cleared up completely.

These are a bit of a Hail Mary, for sure – particularly when you’re doing business with collection agencies that are usually anything but empathetic – but are still worthwhile if you’re looking to fix your score.

Simply write a letter saying that you have already paid off the account and ask the credit bureau or the collection agency to remove the debt from your account out of the goodness of their heart. Ask them to remove it simply because it’s continuing to damage your life even though you have taken action to pay back the debt.

It’s impossible to know whether or not that’s going to work, and some collection agencies are going to be more likely to take this kind of action if you call in person first then others. It’s not a totally useless gesture, however, and is worthwhile to attempt.

The second kind of goodwill deletions we are talking about has to do with you speaking directly to the medical clinic, hospital, or doctor’s office that you have racked up debt with.

These organizations almost always have individuals in their debt collections department assigned to find goodwill cases where debt forgiveness kicks in and the hospital foots the bill of the ENTIRETY of the medicine, procedure, or expenses incurred along the way.

These kinds of organizations are willing to do so because it’s not only a major tax write off and advantageous to their bottom line, but also because it builds quite a bit of good publicity and goodwill towards the hospital and organization in the local community. These kinds of operations do not want to be seen as heartless or difficult to work with, though they may or may not provide you with a goodwill deletion depending upon a whole host of different factors.

Closing thoughts

At the end of the day, it’s a lot easier to have bad marks removed from your credit report (and a whole lot faster than the traditional seven years it takes most people to have them removed) than you would have ever expected.

Be sure to use all of the inside information we have highlighted above in conjunction with your own research and due diligence and you should have no trouble at all getting your credit report cleaned up a lot faster than it would have been cleaned up otherwise.

Obviously, you’ll want to do everything you can in the future to keep your finances in order. Take advantage of credit opportunities only when they are the right decision to make (and not simply when they become available) and you’ll have a lot less to worry about when it comes time to build your credit score over during the recovery.

With the tricks we highlighted above, and solid credit rebuilding strategies, it shouldn’t be difficult for ANYONE to restore and rebuild their credit back to 700 or so inside of 12 to 24 months.

The sooner you begin, the sooner you’ll start to see your credit climb again!

How To Remove Public Records On Your Credit Report

Public RecordsYour credit report is a summary of your financial well-being. It reflects if you have any debts, whether or not you are paying your bills on time, if you have impending loans or are applying for several types of loans at the same time and other quintessential facts related to your borrowings and repayments. Anyone who pays their bills on time and has no debt whatsoever should not worry about their credit score. Their credit report should be impeccable. However, there are instances when errors can lead to wrong entries on the credit report. Everyone should contest such wrong or factually incorrect entries and have them removed.

Public Records 

Not everything on a credit report is a public record. A public record is basically any information that is available with government agencies or regulatory authorities that can be accessed upon request. For instance, your name and address are public records. However, your age or your social security number is not. Public records on credit report have a bit more nuanced definition. These are essentially any information that pertains to legal issues related to your finances. Any legal liability you have, be it an unpaid debt or an impending repayment of a loan, will be a public record. Credit reporting companies will have access to such records. Government agencies and autonomous institutions including courts are also required to report such public records to the credit bureaus.

Types of Public Records 

There are three instances when a development will become a public record on your credit report. The first instance is bankruptcy. If you have filed bankruptcy, which could be personal or for a proprietary business, then that would reflect on the credit report immediately after the court pronounces its judgment. If your company goes bankrupt, that too would reflect on your credit report, unless it is a limited liability corporation or a publicly listed company wherein your personal assets and wealth are completely segregated from the business entity.

The second instance is a tax lien. If you have not paid your taxes, whether you have not filed them or you have not paid some money that is due, such liens will appear on your credit report as public record. There may or may not be any intervention by a court. Such liens feature anyway. If a court gets involved and you are held liable to pay the tax lien, then such record will reflect on the credit report.

The third instance when you would have a public record on the credit report is when you have been sued by someone or an entity and you have lost the case in a small claims court. This can be the fallout of any type of financial dispute. You could be sued by your landlord. You may have a financial dispute with someone you had borrowed money from. Your car may have been involved in an accident and you may not have paid for damages.

Not every financial dispute becomes a public record. If you settle a dispute with someone before they file a case or takes you to court, then there is no judgment in your favor or against. Hence, there is no public record to report to the credit bureaus. Any other financial problem that does not involve the court will not get featured on the report. For instance, you may have a divorce, you may have some personal financial liabilities or some impending payments that are not being documented and reported by any company. Such details will not make their way to the public records on your credit report.

Misconception about Public Records

Court judgments, bankruptcy and tax lien are the three types of public records that feature on a credit report. Income tax, welfare or benefits, education or employment details, healthcare details or other financial information do not become a part of public records. Even if a court judgment involves some of these aspects, only the amount of money you have been asked to pay to the person or entity who won the case will get reported to the credit bureaus or agencies.

Public records work in the same manner as debt collectionagencies report to credit bureaus. Whenever you don’t pay something on time and when the creditor or lender refers your account to a debt collector, the same gets reported to credit bureaus. Hence, if you have a foreclosure, it would get reported. The intervention of a court, bankruptcy and lien are similar. They are about money you owe and hence a form of debt. Such debts get reported and listed as public record.

Facts about Public Records

Public records will stay on your credit report for seven years. If the debts are unpaid, then they can stay for ten years. This rule varies from state to state but seven years is the standard. Whenever a public record appears on your credit report, your credit score will take a hit. It may reduce by fifty points. If the debt is phenomenal, then the credit score can reduce by hundreds of points. The review of your credit score depends entirely on the amount of money you owe and whether or not you have paid it.

Any debt that is paid will have a reduced impact on the credit score. Also, older debts that are paid would have a substantially reduced impact. In five to seven years, older debts will have very little or no impact on the credit score but you must have maintained an impeccable record of repaying loans including timely credit card payments over the same period of time.

How to Remove a Public Record from your Credit Report

The first step is obviously to avoid having any debt, lien, bankruptcy or foreclosure. If you do have a financial dispute that gets the court involved, you should try and settle it before you lose the case. Do not wait for a court judgment if you know you have to pay some money. Pay it before you get sued or before the court considers the merits of the allegations. You can avoid a public record this way. There is not much you can do about bankruptcy or foreclosure. Tax lien is also something that you cannot change in hindsight. Legal disputes pertaining to financial matters are what you can respond to and you should.

One way to remove public records on your credit report is to look for errors in the entry. It is possible that a record will show a debt as outstanding and not paid. You may have paid the debt. This could be a fine levied by the court. This may be a sum of money you had to pay to an individual or organization as warranted in the court judgment. Your public record should have authentic information. If a debt is paid, it should be stated as paid. You can always get the credit bureaus involved, write to the court or hire a credit repair company to fix this. You can also use the debt collector or the agency that was involved in the particular case to report the accurate information so your public record is rectified.

Older public records will fall off your credit report automatically. Credit bureaus don’t look farther than seven years in the past. Banks and other lenders are also more concerned about red flags in the recent years or months. However, it is quite possible your credit score remains low as a result of a public record that has fallen off your report. You should report this to the credit bureaus and have your credit score reviewed.

Some public records cannot be removed. Bankruptcy will remain on your credit report for seven years in most cases and ten years in some states. If you do not attend to some liabilities as instructed by the court following your bankruptcy, then these would reflect on your credit report. You should look for accuracy while studying public records. You want paid debts to appear as paid and unpaid debts will appear accordingly. You cannot remove unpaid debts. Tax liens too will remain on your credit report, even if you have paid them. Make sure they are listed as paid.
You can remove a judgment which is a public record on your credit report. You can hire a credit repair company or you can try to do this on your own. Once you pay a debt as instructed by a court in its judgment, the public record on your credit report will appear as paid. This will positively affect your credit score but the review would not be consequential. Banks and lenders would still consider it as a red flag, especially if it was a fairly recent incident.

One way you can remove public records, in case of a court judgment against you, from your credit report is by getting in touch with the debt collector or debt collection agency that was appointed to recover the money you owe to the plaintiff or claimant in the case. The court will report the developments according to the provisions laid out in the Fair Credit Reporting ActThe Section 609 or US code 1681 requires debt collectors to validate a debt so they know for certain that the individual they are pursuing is actually the person who owes the money. No debt collector can pursue an individual without proving that the debt is valid.

You can write to this debt collector or agency to validate the debt. You can send a letter and it is likely you would be asked to provide more information. In cases where courts are involved, things can get a little complicated as the debt collector will have to refer to the judgment and accompanying documents. It is possible you would have to write more than two or three letters but eventually you will be provided the information you are looking for, wherein you would be confirmed as the individual who owed the money and had actually paid it. Since the debt is paid and it is no longer outstanding for the claimant, court or the collection agency, it should not be reported as such on the credit report. The debt collection agency would report to the credit bureaus and the public record may be deleted as a result.

Impact of Removing Public Records

Your credit report should have entries that actually reflect the facts. If you have an outstanding debt, it should be reflected on your credit report and your credit score will be reviewed accordingly. If you don’t have an outstanding debt, then ideally it should not be on your credit report. Some paid debts will always be on the report as public records but not all. Legal disputes wherein you owe some money are not a conventional loan. It is a judgment that has gone against you and you are anyway required by law to pay the money on the scheduled date. You cannot really dillydally with the judgment as you would be held in contempt of court.

Public records should not be presented unfairly on the credit report. This is where credit repair companies come into play. They can help people to get such records deleted or removed. You can fight this battle alone but it may take eight months to a year. Courts don’t respond promptly. Most courts have an auto response. There would not be any investigation till you send the second or third letter. The debt collector may not be able to steadfastly work with the court and other public records departments where from your details must be obtained. All such problems can prolong the process.

Removing public records from your credit report would have an instant effect on the score. Your credit score may increase substantially but it may not be back at the level where it was before you had the judgment against you. This will take some time.