Doug's Credit Center Blog

How to Clear Collections from Credit Report?


Having a collections charge on your credit report is extremely serious, and it could result in some major problems for you later on. This is particularly true if you’re planning on obtaining a car loan any time in the near future. Knowing how to clear collections from credit report is vital.

 

Call The Credit Card Agency/Lender

You should definitely start with the basics when you want to learn how to clear collections from credit report. Before you can even think about applying for auto financing loans, you need to contact the entity that says you are in collections with it. Questions you can ask include:

  • How much do I owe?
  • Can I get out of collections with you, and how can I do that?
  • Will you work with me so that I can pay a smaller amount in a lump sum?

Asking these questions can help to move the process along.

Discovering Collections That Are Not Yours

Imagine the horror of having something inaccurate reported on your credit report! Well, it does happen, and you need to be on the lookout for it. This is why requesting a free copy of your report before buying a car on an annual basis is a smart idea. You can stay on top of issues and find out if anything is inaccurate. If you see a collections mark on there that is not yours, then you need to call the credit reporting agency that has put it there to start your investigation.

Involving The Professionals

When collections are on your report, you might have to resort to the professionals. For example, let’s say that you are being accused of collections when you are not. You might need a lawyer to help you. Of course, an accountant can assist you in crafting a plan for tackling financial problems that are yours to claim.

Clearing collections from your credit report is a vital procedure, but it’s not always an easy one. Taking these steps can work to ensure that you are eventually in a better financial place.


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