Collection accounts are one of the more common negative entries on credit reports. Most collections on credit reports result from past due accounts that have been sold to third party collection companies for a fraction of the original debt owed. In this article I will give you methods to have such accounts deleted from your credit report to improve your credit rating.
There are two main reasons you may find collection accounts on your report, either it is a case of mistaken identity or you were not able to make payments on a credit account and the account was referred to a collection agency. In either case there are steps you can take to have the items deleted from your credit report.
Mistaken Identity- It is estimated that a good number of credit reports contain errors, and it is not uncommon for someone with the same name as you to have their collection account showing up on your credit report. In this case you can have the account deleted with a simple letter to the credit bureaus.
You want to send them a letter referencing the account in question on your credit report, send them a copy of your ID with your signature as proof that you do not own the account. Upon receiving your letter they need to investigate your claim and have the item deleted if no proof is found that the account is valid.
Collection Accounts You Own- On the other hand if you have a collection account on your credit report because you fell on hard times, your approach may be a little different. If the account is an older account, you can still try challenging it with the credit bureaus via letter. A lot of people have had success with this methods with accounts they own due to the fact that creditor / collection agency did not maintain proper records to proof the accuracy and validity of the account.