Paying it Off V.S Removal

What Is this Collection On My Credit Report?

If you are seeing collections on your credit report, it likely means they have purchased your debt from a creditor and are (or will be) attempting to collect it from you.

Is This A Debt Collection Agency?

Yes, they buy debt from a number of different creditors that no longer wish to attempt to collect the amount themselves (also known as a "charge-off").

These companies may attempt to reach out via mail or phone calls (demanding payment). The worst part is a collections account will now be seen on your credit report. This hurts your score, as well as reducing your chances of getting approved for a loan or other important financial event.

But it’s not all bad news! We may be able to help you with this account. Call us today to find out more.

Who Does They Collect For?

These companies purchases debt from a range of different creditors. The information isn’t always publicly available and is constantly changing, so it’s difficult to provide an accurate and up-to-date list.

Does Collections Hurt My Credit Score?

Yes, it is highly likely having these on your credit report is damaging your score significantly. Anywhere from 50-200 Points Per Account

The Negative Impact of Collections on Your Credit Score

Having collections on your credit report can have a seriously detrimental effect on your score. Lenders view collections accounts as red flags that indicate you may not be reliable when it comes to debt payments, leading them to either deny you credit or offer you higher interest rates and unfavorable terms. Luckily, there are ways to improve your credit score even with collections accounts on the report. Credit repair companies such as Credit Shield can work with you to dispute erroneous information while negotiating with creditors to delete negative items from your record. All in all, get professional help where necessary and stay vigilant—and you'll soon be back in the green!

How to Prevent Future Debt Collections 

Taking control of your finances is the best way to prevent future debt collections from agencies. Begin by devising a budget and living within its confines, ensuring that you pay your bills on time and curb the habit of taking on unnecessary debt. If the situation goes south and you find yourself in the red, don't wait around—reach out to creditors early on so as to explore available payment plans. Consider consulting a credit counseling service or financial advisor too, additional help which could prove invaluable in addressing your debts and preventing an unpleasant revisit from a collection agency. Ultimately, proactive steps towards careful financial management can help secure your financial future.

How Do I Remove These Accounts From My Credit Report?

To be eligible to remove these from your credit report, you typically need to meet the following requirements:

• Any information on the account is incorrect

• Any information on the account is error’d

• Any information on the account is fraudulent

• And is not (or cannot be) fixed in an appropriate amount of time

According to a study by the U.S. PIRGs, 79% of credit reports contain mistakes or serious errors. Going after these types of accounts for our clients is our specialty.

Should I Pay For Delete With The Company?

Paying off creditors to have credit bureaus delete it from your report sounds like a good idea. There's one major problem. Paying a debt in collections changes your credit report status from 'unpaid' to 'paid', but the collection remains on your report for 7 years (from the date of first delinquency). This means your credit is still damaged.

Should I Negotiate A Settlement?

Settling your debt could go both ways. It may help your score, but it may also hurt your score. Many variables impact the end result. There is a better path to a good result. Work with a company that is able to review these accounts for you (like Credit Sage), and if any issues with the account exist you may have it removed all together (and never have to hear from them again).

Are these companies Legit, Fake Or A Scam?

These are legitimate companies. They aren’t fake or trying to scam you. But it is likely they are spam calling you trying to collect a debt. One of the best ways to deal with this is to dispute and remove unvalidated debts.

Why Do They Keep Calling Me?

Agencies continues to call and attempt to collect a debt. The best thing you can do is ignore their calls and speak with a company that can help you get it removed (like Credit Sage).

How To Get Collections Companies To Stop Calling Me?

As we’ve mentioned above, these agencies will be calling you to attempt to collect a debt. The best thing you can do to stop this is speak with a company that can help you get them removed from your credit report, like Credit Sage. Once they are off your credit report, you won’t have to hear from them again.

Will They Try Suing Or Garnishing My Wages?

Agencies suing would be a very unlikely situation. In rare cases it may happen, but it certainly isn’t the norm. State and federal laws place limits or 'exemptions' that apply to bank and wage garnishments.

We strongly recommend calling us, we’ll help determine the likelihood of a lawsuit, but also provide you next steps in getting this collection removed.

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What Are My Rights When Dealing With Collections?

You have the right to dispute any of your debt that agencies has purchased.Agencies is governed by the Fair Debt Collection Practices Act (or FDCPA) and the Fair Credit Reporting Act (or FCRA). While these acts seem very complicated, they provide a great deal of power to the consumer if you know how to use it properly.

Get These Accounts Removed From Your Report, Today!

In most cases, we recommend speaking with a Credit Repair professional to analyze your credit report before you attempt to settle any debt. The main reason? Settling your debt may actually hurt your score.