How Do I Get a Creditor to Remove a Collection?

Getting collection stains out of your credit score isn’t easy, especially if you have defaulted on your debts for a long time.

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But with the right Miami, Florida credit repair company on your side, you can get the creditor to remove collection reports from your credit profile.

If your creditor doesn’t remove collections from your credit score, you’ll have a hard time getting your loan applications approved. Can you be denied a loan after pre-approval? Yes–and this is another factor that can negatively impact your credit score.

What Is a Collection Report?

A collection report on your credit profile means that your account has become delinquent and the creditor has turned it over to a third-party debt collector or sold your debt to a debt collector. When this happens, the collection account may be reported as a separate account on your credit score, making it difficult for you to obtain a loan.

Having a collection account will have a major impact on your credit score because it’ll scare away potential creditors, making it difficult for you to get a loan when you need it. Many types of credit can end up in a collection account, including student loans, utilities, medical loans, and more.

Does tax debt affect your credit score? No–but it can affect your credit score if the Internal Revenue Service (IRS) files a Notice of Federal Tax Lien in court. This normally happens when you don’t pay the amount you owe on time and when you owe a large amount of tax debt.

Unfortunately, the IRS works with private debt collection agencies to collect overdue tax bills on its behalf. Therefore, your overdue tax debt could be added to your collection account’s balance, thus adding more stains to your credit profile. This is why it’s important to learn how to get your creditor to remove collections from your credit score.

How to Get a Creditor to Remove Collections from Your Credit Score

If you want collection accounts out of your credit reports sooner than the seven-year limit, you should take the following steps:

Understand Your Credit Report

The first step is to understand your debt and credit score so that you can figure out the easiest way to repair it. With the help of a reputable credit repair company like The Phenix Group, you’ll have a comprehensive record of your collection account, including your payment history. These details will enable your credit repair company to figure out the best approach to convince your creditor to remove the collection account from your credit profile.

The record will help you to identify any errors in your credit report and initiate any relevant dispute. For instance, you may discover that your collection account is older than seven years, which makes it contestable. The law says that any delinquent collection account should fall off the credit report after seven years from the first date it was declared delinquent.

If you discover that the collection is incorrect, you should bring it to the attention of the collector and ask them to authenticate the debt and ensure it’s yours. Please note that you only have one month to dispute the collection and ask for validation. If the collector fails to validate the debt, the collection account should fall off automatically.

Goodwill Deletion

If you’ve paid the entire amount, ask your creditor for a “goodwill deletion.” This is a formal request to the creditor or debt collector to remove the collection account from your credit report as part of repairing your credit. This request is important when you are trying to apply for a new loan–any considerate creditor shouldn’t reject the request if you’ve cleared the debt.

For help with any aspect of collection report removal from your credit report, reach out to the experts at The Phenix Group. We’re ready to guide you through the process of getting your credit back on track today!

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