Why would anyone be interested in reading about credit report collections? Well, most the time it’s because you have been denied credit and have ordered the credit report to see what’s going on.  Low and behold many times there are collections on your credit report.  These collections are being reported by collection agencies and they’re killing your credit scores!

When someone researches their credit report for problems and finds collections, usually the immediate response is to begin looking for ways to correct or remove those items from their credit report. The good news is there are a few ways. The most popular way is by disputing them with one of the 3 main credit bureaus (Equifax, Trans Union and Experian) that are reporting them.

You can also contact the collection agency directly and try to… work out a deal with them.  Please make a note here, you must be careful as it is possible to cause more pressure on your credit scores and the level of intensity of the collector.  You simply ask them to remove it in exchange for paying the debt in full or settling in full.   This is called pay for delete. Many collection agencies will tell you that they can’t remove it, but they definitely can. Credit reporting is 100% voluntary and anything that can be placed on it can be removed at any time.

If a collection agency doesn’t cooperate with you, simply don’t pay them because even if they upgrade the account to “paid collection” it is still on your credit report for 7 more years from the date you paid, unless you get them to remove it.  Worse still is in many cases paying a collection will bring your scores down. Of course, you always want to get the agreement in writing as collection agencies don’t always have the most trustworthy people working for them.  Never ever take a verbal agreement with a collection company.

Many people stumble on this part and are unable to persuade the collection company to give a letter of delete and may just believe that paying the debt off will help their credit scores. After the collection company has your money they simply no longer care and will not help.  This is why most complain that this collection or that one should not be reported as they accepted a verbal agreement.  It’s a costly mistake and can be easily avoided when obtaining the services of a professional.

Lesson…most have troubles negotiating with a collection company. To find out if debt settlement might help you check out www.smartdebtrelief.org. Enter in your collection debts, credit card debt or other unsecured debt into the calculator to see just how much you might save every month.

Be Bold!!

Herschel