How to Get Creditors to Erase Accounts from a Credit Reporting Agency

Collection accounts, charge-off accounts and other bad debts appear as a negative mark on your credit file and lower your overall credit score. You can work with a collection agency or creditor to remove a negative listing from your credit report by offering to pay the debt if the creditor will agree to remove the listing.

Instructions

1

Order a copy of your credit report. By law, you can obtain a free copy of your report from TransUnion, Equifax and Experian once a year through Annual Credit Report. Access and print your credit report from all three credit bureaus.

2

Review your report and circle any collection reports or charge-off accounts.

3

Call the creditor or collection agency reporting the bad debt using the phone number listed on your credit report. Inform the creditor that you are disputing the validity of the debt, but wish to reach a settlement amount in exchange for the creditor removing the listing from your credit file.

4

Write down the name and phone extension of the person you spoke to as well as the settlement amount offered. If the creditor did not agree to a settlement amount, write down the full amount owed.

5

Write a letter to the creditor or collection agency you spoke to stating you agree to pay to the agreed-upon amount providing the creditor removes the negative listing from your credit report. Request that the creditor agree to the arrangement in writing on their company letterhead.

6

Mail the letter certified mail to the address listed on your credit report.

7

Send a certified check or money order for total owed or the settlement amount to the creditor after you have received a letter from the creditor or collection agency stating it agrees to remove the negative credit listing.

8

Order a second copy of your credit report from the three credit bureaus 45 to 60 days after you pay the debt. You can order a second copy of your credit report directly from the credit bureaus by visiting their websites or calling their toll free numbers.

9

Review your credit report and verify that the creditor removed the negative file.

10

Dispute the negative file with the credit bureau if the company did not remove it from your report. Write a letter to the credit bureau saying you wish to dispute the information. Provide a copy of the company's written agreement to remove the file as well as proof of payment and your original correspondence with the creditor or collection agency.