How to Remove Collections From Your Credit Report

Seeing a collection account on your credit report can feel urgent and stressful, especially if you are trying to qualify for a loan or other financial product. While you can’t always get rid of collections immediately, there are legitimate ways to address them. 

Here’s how to remove collections from credit reports and what to do after to rebuild your score. 

How to remove collections from your credit report

There are several ways to address collections on your credit report, depending on whether it’s accurate and who owns the debt. Review your credit report and identify any collections on your account. Then, categorize them.

If a collection account contains an error, you can dispute it with the credit bureaus. Common types of errors include the wrong balance or an account that doesn’t belong to you. When you file a dispute, the bureau must investigate and verify the debt with the collection agency.

If you identify a debt as legitimate and it’s already been sent to a collection agency, you may be able to negotiate. This is often called a pay-for-delete request. In this scenario, the agency may agree to remove the account from your credit report in exchange for payment. They may even accept a percentage of the total balance. 

Finally, you can agree to settle or pay the collection. In this scenario, it may not be removed from your credit report. However, the account will be updated to “paid,” which can be beneficial for you in the long run. 

If you’re not sure where to begin, Kikoff offers free debt negotiation on eligible debts and free dispute letters. You can generate a dispute letter and email it to TransUnion or download, print, and mail it to Equifax or Experian. 

How collections affect your credit score

Collections are considered a negative credit event because they indicate that you missed payments and waited long enough for a creditor to involve a third party. They can lower your credit score and make lenders view you as a higher risk. 

The impact of a collection depends on the type of account, the amount owed, and how long it’s been delinquent. 

What are the limits to removing collections from your credit report?

It’s important to set realistic expectations when learning how to remove collections from credit reports. You probably won’t be able to have accurate, verifiable collections removed simply because you ask. Credit bureaus are required to report accurate information, even if it’s negative. 

You also can’t remove collections by:

• Closing the original account
• Ignoring the debt
• Using third-party services that promise guaranteed removals

If a collection is legitimate and still within the reporting window, the best option is to deal with it. Reach out to the collections agency and see if you can set up a payment plan or negotiate a lower one-time lump sum. 

How long collections stay on your credit report

Most collection accounts stay on your report for seven years from the date of the first missed payment that led to the collection. This is based on the original missed payment with the lender, not the third-party agency that bought your debt. Making a payment does not reset the clock. 

Once the seven-year period closes, the collection should automatically fall off of your report. 

Conclusion

Now that you know how to remove collections from credit reports, it's time to focus on bouncing back. Fortunately, there are tools like Kikoff to help you along the way. 

With Kikoff, you can dispute errors on your report, report verified rent payments, and more. Take a step toward stronger credit habits with Kikoff.