How to remove a collection from your credit report for free. Credit Score Tips


Hi everybody Dave Sullivan here for The Credit
Guy TV this time we are going to go through Collections
and how to address them. You should have already received your annual credit report . com free
copy of your credit report. then tried to dispute something on line, and then addressed
your onetime 30 day late on open active accounts. Now we are going to talk about how to handle
collections. and the best way to handle a collection is to not have one. the collection
companies are required to send you a letter prior to filing that collection on your credit
report at least 30 days before filing it. So you have time to address it so as soon
as you get a collection letter there is no reason not to address it at that time it is
the best way to handle it. everyone gets a collection letter and you are not sure if
it is real or not so you toss it. so it finally got on your credit report now what do you
do. if it is very recent if you happen to catch it right when it came on within 6 months
you are going to want to pay that right away pay that off right away. and when you pay
it you should ask them to remove it. say look I did not get the notice or whatever the honest
answer is I did not know if it was real I will pay this for you but you have to remove
it from my credit report. Most of the time they will agree to remove the collection.
they are not required by law to report the information. so in order to get it played
off they will be very willing to remove it prior to paying the account now if you have
already paid it you cannot go back and ask them to remove it because 9 times out of 10
they will not even talk to you. so if you had a recent collection within 6 months go
ahead and pay that off as time goes by the date reported will sunset on your credit score
and it will take a couple years before it has very little effect on your credit score
and then fall off with in 7 to 10 years Now let’s say you had an old collection well
the same rules apply you are going to call the collection company say I will pay this
off if you remove this from my report it is very important that if you are going to make
the commitment to pay it off that you get something back if you pay an old collection
that had not reported in a long time what will happen is that that old collection will
come up to today. so really if you pay an old collection you are going to wind up hurting
your credit score. and what happens is you make that collection more relevant to your
credit score because it has a new reporting date. so you want to be very careful when
handling collections it is a big mistake when people go to apply for a mortgage they say
that well I guess I need to pay off all these collections to get a mortgage and they kill
their score and they don’t get the mortgage if there is one you don’t recognize than there
is the verification of debt letter if you Google verification of debt letter there should
be some resources on line for you but that is how you handle collections be very careful
on how you handle them it will affect your score greatly if you take an old one and make
it more relevant to today alright so you with a little bit of me we are going to change
the credit industry

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