Did you know that if you are trying to improve your credit, in addition to starting to manage it carefully, you must clean up the negative notes that exist in your credit record. Debts in collection are some of the entries that must be deleted from the report in order to have a good rating or Score.
What are the best steps to follow to improve the credit report in relation to those existing collection debts, past debts or existing debts. First of all you must verify what those debts are, request your free credit report through AnnualCreditReport.com. Review all entries and make sure they are valid. If you discover some negative entries that are included by mistake, you can dispute them with the original creditor directly. Contact the creditor to verify the debt. If they are errors, ask that they be deleted from your report. If it is a lot of work for you, consult your credit repair company that gives you confidence.
If the debts are already current and you don’t owe anything, wait for the collection debts to be erased without doing anything. This can last from 4 to 7 years. It is 7 years from the date you stopped making payments. At age 7, old debts are removed from the credit report. If you have no plans to buy a house, a car or request a loan, this may be your option.
Talk to Collection Agencies
Debt collection agencies are often aggressive and also intimidating when collecting past due debts. These agencies use tactics like garnishing your earned income, stripping you of your belongings, and taking you to court if you don’t pay your debts. Although the debts have already been reported to the credit bureaus, it is important to pay the bureaus to avoid further problems with your credit.
Check the debt
Make sure the debt really belongs to you. Ask the agency to prove that you are the debtor. Also the name of the bank or credit card, the date and the amount of the original debt.
5 important things about collection debts
- These debts remain for 7 years on your credit report. This date can only be changed by a court.
- Agencies cannot change the date or renew the original date of the unpaid debt.
- The amount of the debts can be negotiated with the agencies.
- It is important to have a written agreement if you decide to deal with a collection agency.
- It is best to pay collection debts, even if they are negotiated.
