How to Remove Paid Collections From Your Credit Report: A Comprehensive Guide

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There is no upside to having an account in collections on your credit report. It is a red flag, it screws your scores, and it stays on for what feels like forever. It is something you don’t want to have, plain and simple.


Life happens. Bar the off chance that a creditor flags your account in error, you may fall so behind on payments due to financial difficulties that your creditor decides to sell your debt to a debt collection agency or company—also called debt collectors or debt buyers.

After the sale, it’s only a short time before a shiny new collection entry pops up on your report. At this point, it is imperative to explore all possible options to remove paid collections from your credit report. Make no mistake, it isn’t a cakewalk: but, it is possible.

Now, before exploring these options, it is crucial to note a few things about debt collections on a credit report.

Collections on a Credit Report: Rules and Norms

  • It is lawful. The Federal Trade Commission confirms that it is within the rights of creditors to send your account to a collection agency. And the debt collector or original collector can, and typically do, report the account to credit reporting agencies.

That said, the FTC enforces the “Fair Debt Collection Practices Act (FDCPA),” which details the rules a collection company has to play by when recovering debt as well as consumers’ rights.

  • It hurts your credit score. Collection accounts are a major factor that can send your score tumbling down. They are considered to be seriously delinquent and scream “high risk.”

Sure, its impact reduces with time (as it ages). However, it could be one of the core reasons for a declined loan request and higher interest rates, especially if it is unpaid, is recent, or both.

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