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Does Your Credit Go Up When Collections Are Removed?

Most Affordable Credit Repair

Having collections on your credit report can be a significant hindrance to achieving your financial goals. Have you ever thought, "Does my credit increase when my collections are removed?" The very short answer is yes it does, but the longer answer is the extent to which your credit score improves can vary based on several factors. In this comprehensive blog post, we'll explore how collections affect your credit score, the impact of removing collections, and strategies to improve your credit score. If you need personalized assistance, check out Cents Savvy Credit Repair Counseling for expert guidance.

Understanding Your Debt Collections and The Impact To Your Credit Scores

What Are Collections?

Collections occur when you fail to pay a debt, and the creditor or lender sells your debt to a collection agency. This will likely happen after you miss several months of ongoing payments. Once a debt goes to collections, it will be reported to the major credit bureaus at minimum and appears on your credit report.

How Collections Affect Your Credit Score

Collections can significantly damage your credit score. They are considered a major derogatory mark and can stay listed on your credit reports for up to the next seven years. The presence of collections indicates to potential lenders that you have had difficulty managing your debt in the past, making you a higher-risk borrower.

Factors influencing the impact of collections on your credit score include:

  • The amount owed

  • The recency of the collection

  • The number of collections

  • Your overall credit history

The Impact of Removing Collections

Does Your Credit Score Increase?

When a collection is removed from your credit report, your credit score can increase. The credit scoring increase will likely depend on many factors, including the nature of the collection and your overall credit profile.

Factors Affecting the Increase

  1. Recency of the Collection: More recent collections have a greater impact on your credit score. Removing a recent collection can lead to a more significant increase.

  2. Number of Collections: If you have multiple collections, removing one might not result in a substantial increase. However, removing all collections can significantly improve your score.

  3. Overall Credit Profile: If your credit report has other negative marks, such as late payments or high credit utilization, the impact of removing a collection might be less pronounced.

Case Study Examples

  1. John’s Experience: John had a collection from a medical bill two years ago. After successfully disputing the collection and having it removed, John’s credit score increased by 50 points.

  2. Sarah’s Journey: Sarah had three collections from credit card debts. She negotiated a pay-for-delete agreement, and once the collections were removed, her credit score jumped by 100 points.

Steps to Take To Remove Debt Collections from Your Credit Reports

1. Obtain Your Credit Report

The first step is to obtain a copy of your credit report from all three major credit bureaus: Equifax, Experian, and TransUnion. You can get a free annual report from each bureau through

2. Review Your Credit Report

Carefully review your credit report for any inaccuracies or errors related to collections. Common errors include incorrect account information, duplicate accounts, and outdated collections.

3. Dispute Inaccurate Collections

If you find errors when reviewing your credit reports, we recommend exercising your consumer right to dispute them with the credit reporting bureaus. Follow these steps to dispute incorrect collections:

Write a Dispute Letter

Draft a dispute letter detailing the inaccuracies and provide supporting records, such as payment receipt records or communication records with the creditor. You can find templates online to help structure your letter.

Submit Your Dispute

Submit your dispute letter to each credit bureau reporting the incorrect collection. Most bureaus allow online, mail, or phone disputes. Keep copies of all written communication for your dispute records.

Follow Up

The credit reporting bureaus have 30 days to perform your custom investigation and respond to you directly. If the creditor cannot validate the debt, the collection must be deleted immediately from your credit reports.

If the collection is accurate, you can still negotiate with the creditor or collection agency to have it removed.

Pay-for-Delete Agreement

A pay-for-delete agreement involves negotiating with the creditor or collection agency to delete the collection from all of your credit reports immediately in exchange for payment. Not all creditors or agencies will agree, but it’s worth trying. Ensure you get the agreement in writing before making any payments.

Goodwill Letter

If you’ve already paid the debt, consider sending a goodwill letter to the creditor or collection agency. Explain your situation and request that the negative mark be removed as a gesture of goodwill. Goodwill letters work really well if you have a history of timely payments.

5. Seek Professional Help

If you're having trouble removing collections, consider seeking professional help. Credit repair services, such as Cents Savvy Credit Repair Counseling, offer expert guidance and support. They can help you navigate disputes, negotiate with creditors, and create a customized financial plan to improve your credit score.

Tips for Improving Your Credit Score

1. Make Timely Payments

Paying your bills on time is super important for maintaining a good credit score. Set up autopay to ensure you never miss a due date.

2. Reduce Credit Utilization

The amount of available credit you're using, which is known as credit utilization, is a large factor in your credit score. We recommend keeping your credit utilization below 30%. Pay down balances and avoid accumulating new debt.

3. Diversify Your Credit Mix

Mixing up different types of credit, such as credit cards, installment loans, and mortgages, can positively impact your credit score. As a reminder to this tip, only take on new credit if you can manage it responsibly.

4. Do Not Open Too Many New Accounts

A new credit application always results in a hard inquiry on your credit report.  This can temporarily lower your credit score. Limit the number of new accounts you open to protect your credit score.

5. Monitor Your Credit Regularly

Regularly monitoring your credit report helps you catch potential issues early. Use a free or paid credit monitoring service to truly and timely stay informed about changes to your credit report.

Understanding Your Rights

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a law that monitors and governs the collection, the dissemination, and the use of consumer information, including your credit reports. Under the FCRA, your rights as a consumer include:

  • Access: You get at minimum one free credit report per year from each of the three major credit bureaus.

  • Dispute inaccuracies: If you find any errors or discrepancies on your credit report, you have the right to dispute them with the credit bureaus.

  • Be notified of negative information: Creditors and collection agencies must notify you before reporting negative information to the credit bureaus.

  • Limit access to your credit report: Only authorized parties, such as lenders and employers, can access your credit report.

Fair Debt Collection Practices Act (FDCPA)

The Fair Debt Collection Practices Act (FDCPA) is a law that regulates and governs the behavior of debt bill collectors. Under the FDCPA, your rights as a consumer include:

  • Be treated fairly: Debt collectors must treat you with respect and cannot use deceptive or red flag practices.

  • Request verification of debt: You have the right to request written validation and debt verification of a debt within 30 days of being contacted by a debt collector.

  • Dispute a debt: If you believe a debt is not valid, you have the right to dispute it with the debt collector.

  • Cease communication: You can request that a debt collector stop contacting you, although this does not eliminate the debt.

1. Build a Positive Credit History

Building your positive credit history will take time (3 to 6 months) and consistent effort. Use credit responsibly, make timely payments, and manage your debts effectively to build a strong credit history.

2. Maintain Low Balances

Keep your credit card balances low (30% outstanding) relative to your credit limit. This helps maintain a healthy credit utilization rate. This is one of the quickest ways to improve your credit score.

3. Avoid Closing Old Accounts

The length of your credit history (ex. 15 year credit history) impacts your credit score. Keep old accounts open, even if you don't use them regularly, to benefit from a longer credit history.

4. Use Credit Wisely

Only borrow credit based on what you can afford to repay. Avoid at all possible maxing out your credit cards and taking on more personal debt than you can manage.

5. Stay Informed About Credit Score Changes

Understanding how different actions impact your credit score can help you make informed decisions. Use educational resources and credit score simulators to see how different scenarios might affect your score.

When to Consider Professional Help

Sometimes, despite your best efforts, improving your credit score on your own can be challenging. Professional credit repair services can provide valuable assistance and support. Here are some signs you might need professional help:

Complex Credit Issues

If you have multiple collections, charge-offs, or other severe negative marks, professional help might be necessary to navigate the complexities.

Limited Time and Resources

If you lack the time or resources to manage disputes and negotiations on your own, a credit repair service can handle these tasks for you.

Need for Expert Guidance

Credit repair professionals have expertise in dealing with credit bureaus and creditors. Credit professionals can offer custom advice and strategies to fix your credit score.


Removing collections from your credit report can lead to a significant increase in your credit score, but the extent of the improvement depends on various factors. By understanding how collections impact your credit, taking steps to remove them, and following long-term credit improvement strategies, you can achieve a healthier credit profile. If you need personalized help, reach out to Cents Savvy Credit Repair Counseling for expert guidance.

Improving your credit score takes patience and diligence.  With the right credit approach, you can achieve your financial goals. Start taking control of your credit today and pave the way for a successful financial future.


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Site Disclaimer: All content provided on Cents Savvy LLC blog is for informational purposes only. The owners of this blog make no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owners of Cents Savvy LLC will not be liable for any errors or omissions in this information nor for the availability of this information. The owners will not be liable for any losses, injuries, or damages from the display or use of this information.

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