How to Remove Collections From a Credit Score

When you have collections showing up on your credit report, it will impact your ability to get loans, insurance and even employment. Having an account in collection is negative information. Your credit score will be lower and potential lenders will see you as a poor risk. If the collections are outdated or incorrect, you have have them removed from your credit report so they won't affect your credit score.

Things You'll Need

• Copies of your credit reports from Transunion, Experian and Equifax

Instructions

1. Obtain a current copy of your credit report from each of the major credit bureaus. The three major bureaus (Transunion, Equifax, and Experian) are all required to give you a free copy of your credit report every year if you request one.

2. Read the reports carefully to find any collections information. Each report will be somewhat different, but you will be provided with instructions on how to interpret each one. If any of the information is incorrect on any of the reports, make a note of it.

3. File a dispute with each of the bureaus listing incorrect collections information that is affecting your credit score. The proper procedure for filing a dispute will be listed on each of the reports. Save a copy of your dispute so you can follow up in a month or two to ensure that the collection information has been removed.

4. If any of the credit bureaus refuse to remove the erroneous collections information, add a consumer statement to your report. This statement explains your side of the dispute and will be available to prospective lenders and anyone else who requests your report.

5. Continue to check all three credit reports on an annual basis for any other erroneous collections that might show up and affect your credit score negatively. Remember, you are entitled to the reports once every year at no cost to you.

Tips & Warnings

• Never pay an outside firm that promises to repair your credit. You can get free copies of your own reports. And if you discover errors, you can dispute them at no cost.

• When you submit a dispute to a credit bureau, it must follow up with the appropriate company or collection agency to verify the information. If the information cannot be verified, the agency must remove the collections information even if it is accurate. Some consumers will file invalid disputes in an attempt to get true collections information removed from their reports, hoping that the company will fail to respond with a verification. Be cautious about doing this because you can get in legal trouble for doing it.

Resources

• Website to obtain free annual credit reports from the three bureaus.