Debt Consolidation Credit Counseling In Phoenix

You will have to dispute the collection to have the credit bureaus remove it from your credit report. You must file a dispute directly with the bureaus.

A dispute letter must be sent to each bureau. In your letter you have to identify the mark you are disputing and why it is inaccurate and should be erased from your report.

Then a copy of this letter must be sent to each credit bureau. When the bureaus receive your letter and deem it valid they will investigate the disputed mark.

It is common for investigations to result in the deletion of a mark. This is because most lenders and collection agencies are unwilling to spend the resources verifying uncollectible debts.

If your debt is verified then a credit repair service can really be helpful. They can use advanced dispute techniques such as; debt validation, escalated dispute information requests and creditor direct intervention to remove a negative mark.

What is a collection?

A collection is a lenders last resort to collect on a delinquent account. Typically your account will go to collections after 6 months of delinquency.

It is common for lenders to have an in house collection agency. However many also outsource and/or sell the delinquent debt.

These agencies will purchase your debt for a fraction of the balance or they will work together with a lender. This means they will collect on behalf of the lender and receive a percentage of all the money they collect.

Be aware that if you just pay a collection it will remain on your credit report. It will change the status of the collection but paying it will not remove it from your report. Future lenders will still see the mark as a negative item even as a paid collection.

In sum you do not have to live with bad credit marks on your report. You can dispute them and have them removed by the credit bureaus.