Can Your Remove Collection Agencies fromYour Credit Report?

Collection accounts accurately reported remain on your credit report for seven years from the date the original account has gone past due.

Paying off the collection account

Paying off the collection accounts will not remove them from your credit report.  The report will note that it is paid, which is helpful if you are borrowing or purchasing a home.

A collection account will be automatically removed in seven years after the original account went delinquent.

The original account’s date is the date that your account becomes 30 days late.  The first month the late payment starts will be the starting point of the 7-year period.

Making a payment doesn’t reset the timeline for when the account will be deleted from your credit report.

Statute of Limitation

Different states have different statute of limitations for collecting debt. So, you should check your state’s regulation.  A new collection agency purchasing your debt might reset the statute of limitations on the debt, meaning how long the debt can be legally collected.

Can You Remove Collection Accounts from Your Credit Report?

You can’t get a correctly reported collection account removed from your credit report early.

If you notice an error with the collection account, you can dispute the error by going to the following link, which helps you on how to dispute an item off your credit report.

For example, if the collection agency does not update your paid collection account on the credit bureaus.

How Do Collections Affect Your Credit Scores?

A collection account is a negative item that can lower your credit scores but its impact on your score can depend on the type of report you have and how strong your credit report is.

When you’re applying for a loan, such as buying a house with a lender that uses older scoring model, paying down your collections could still be important. Credit scores aside, the lender may review your credit history, and having unpaid collections could make it more difficult to qualify.

Improving Your Credit When You Have Accounts in Collections

In addition to paying off collection accounts, you can take a variety of actions.  For example, if you have open credit cards or loans, make all payments on time going forward. Payment history has the biggest impact on your credit scores.

You can also work to lower the utilization rate of your credit cards. Paying down credit balances will help improve your score. The rule of thumb is for the balances to be lower than 15%.

Having a long history of on-time payments and low debt relative to your available credit limits can help improve your credit over time.

Review Your Credit Reports

You can also review and monitor your credit reports to watch for improvements.  Here is the link for you to use to see your report: