How to Remove Collections from Your Credit Report from www.lexingtonlaw.com
Introduction
If you have debts that have been sent to a collection agency, you may be wondering how long it will take for those debts to show up on your credit report. This is an important question, as your credit report can have a significant impact on your financial future.
What is a Collection Agency?
A collection agency is a company that specializes in collecting debts on behalf of creditors. When you fall behind on payments to a creditor, they may turn to a collection agency to help recover the debt.
How Does a Collection Agency Affect Your Credit Score?
When a collection agency takes over a debt, they will typically report the debt to the credit bureaus. This can have a negative impact on your credit score, as it will show up as a delinquent account.
How Long Before a Collection Agency Reports to the Credit Bureau?
The amount of time it takes for a collection agency to report a debt to the credit bureau can vary. In general, however, most collection agencies will report a debt to the credit bureau within 30 days of taking over the debt.
Why Does it Take 30 Days?
The reason it takes 30 days for a collection agency to report a debt to the credit bureau is because they need to verify the debt first. This means that they need to confirm that you actually owe the debt before they can report it to the credit bureau.
How Long Will the Debt Stay on Your Credit Report?
Once a debt has been reported to the credit bureau, it will typically stay on your credit report for seven years from the date of the first delinquent payment. This means that even if you pay off the debt, it will still show up on your credit report for seven years.
What Can You Do if You Have a Collection Account on Your Credit Report?
If you have a collection account on your credit report, there are a few things you can do to try and improve your credit score. One option is to try and negotiate with the collection agency to have the debt removed from your credit report in exchange for payment.
What if You Dispute the Debt?
If you believe that a debt has been reported to the credit bureau incorrectly, you can dispute it. You can do this by contacting the credit bureau and providing evidence to support your claim.
Conclusion
In conclusion, if you have debts that have been sent to a collection agency, it is important to understand how they can impact your credit score. While it may take up to 30 days for a collection agency to report a debt to the credit bureau, it can have a significant impact on your credit score for years to come.