How to Settle Debt and Remove from Credit Report

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Did you know? If you left your debt unpaid for several months, creditors will send your account to debt collectors. They will then list that very account on your credit report. As a result, you have debt collection on it and it will hurt your credit score. The effect on your credit will lessen over the time, but it will remain for up to 7 years. If you don’t want it to be there, you should consider removing it from the report. How to settle debt and remove from credit report can be done in some ways here.

1. Remove with Credit Report Dispute

The first way of how to settle debt and remove from credit report would be this one. When you find that the debt is not yours, collectors are not supposed to list it. Using the credit report dispute to remove the debts would be the best. Past due accounts might remain for up to 7 years, but sneaky collectors can re-age it. So, be sure to dispute it if the time is up. Also, if the collection agency on the report is not the current one, dispute it to remove the older one. How to settle debt and remove from credit report should consider these all.

2. Remove with Payment for Deletion

The second way to settle and remove debt from credit report is to pay for delete. If the dispute does not seem to work in your case, you should try this one. As the name suggests, you request for deletion to the collector in exchange for payment. Ask for a signed copy of the letter then. If it is over the phone, get the written agreement before paying. Check the credit report if the debt deletion has been done. This is how to settle debt and remove from credit report with this method.

3. Remove with the Goodwill Deletion

The third way of how to settle debt and remove from credit report here makes good alternative if the previous one does not work. The letter works with the accounts you have paid. It is pretty much for asking some mercy to the collector. You can say that you are experiencing hard times. Thus, you need to remove the debt collection from the credit report. How to settle debt and remove from credit report has more than one alternative you can try. Try another if one does not seem to work.

4. Remove by Paying the Debt Collection

The last way you can resort to here is to pay off the debt collection itself. You can try this if neither of those methods works in your case. You need to know that paid collection is always better than the unpaid one. Furthermore, it will show that you have taken care of your responsibilities well enough. As you wait for the time limit, eventually the old account will fall off. How to settle debt and remove from credit report can be this easy if you just pay off the debt. So, give some considerations.

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