HOW I REMOVED 7 COLLECTIONS FROM MY CREDIT REPORT *YOU DON'T HAVE TO PAY*

Summary

Monique shares her personal journey of improving her credit score from the 500s to 780 by removing seven collections from her credit report. She advises viewers to never claim debt, obtain credit reports from all bureaus, and dispute inaccuracies by letter rather than online. Monique also discusses settling with collection agencies but emphasizes the importance of getting a deletion agreement in writing before making any payment to avoid resetting the statute of limitations.

Takeaways

• 📈 The speaker had seven collections on their credit report but managed to remove all of them and increase their credit score by over 100 points.
• 🔍 It's crucial to obtain credit reports from all three bureaus (TransUnion, Experian, and Equifax) as collection agencies may not report to all of them.
• 🤔 Credit Karma is mentioned as a useful tool for viewing credit reports, but it uses the VantageScore model, which may not reflect the score used by mortgage lenders.
• 🙅‍♀️ Never claim or acknowledge debts when contacted by collection agencies to avoid legally binding oneself to the debt.
• 📝 The speaker recommends disputing inaccuracies on credit reports by sending a certified letter to the credit bureaus, including specific details about the disputed items.
• ✉️ Dispute letters should include personal and credit bureau information, the collection agency's name, and a clear statement of the dispute and the desired action.
• 🚫 It's advised not to dispute more than four or five items within a 30-day period to avoid being labeled as 'frivolous' by credit bureaus.
• 📈 After disputing, if the credit bureau does not respond within 30 days, it's considered a win for the consumer as the burden of proof lies with the bureau.
• 💸 Settling with collection agencies is an option, but only if they agree to delete the collection from the credit report; otherwise, it may negatively affect the credit score.
• ⏳ Be cautious with payment plans or any activity towards a collection as it can reset the statute of limitations, extending the time the collection stays on the credit report.
• 📝 Always request a deletion letter before making a payment to a collection agency to ensure the agreement is documented.

Q & A

How many collections did the speaker have on their credit report initially?

The speaker initially had seven collections on their credit report.

What was the speaker's primary motivation for improving their credit score?

The speaker wanted to improve their credit score because they were ready to purchase a house.

What is the speaker's educational background regarding credit repair?

The speaker is not a credit repair specialist; they educated themselves through online resources like Google and YouTube.

Why is it important to get a copy of your credit report from all three credit bureaus?

It's important because not all creditors and collection agencies report your debt to every credit bureau, and having all reports helps to have a complete picture of your credit situation.

What is the difference between Credit Karma and the credit scores used by mortgage lenders?

Credit Karma uses the Vantage scoring system, which is not the same as the scores used by mortgage lenders. The speaker compares Credit Karma to a 'Tinder date' because it may not reflect the true picture of one's credit score.

What is the first step the speaker took in disputing the collections on their credit report?

The first step the speaker took was to make a detailed list of all the collections, including the collection agency's name, number, address, and any partial account numbers.

What is the recommended method for disputing inaccuracies on a credit report according to the speaker?

The speaker recommends disputing by letter, as it provides a paper trail and is more effective than online disputes.

Why should you not dispute more than five items in a 30-day period according to the speaker?

Disputing more than five items in a 30-day period may lead to being marked as 'frivolous,' which is a title you do not want for yourself as it can negatively impact your credit dispute process.

What is the significance of mailing the dispute letter via certified mail with a return receipt?

Mailing the dispute letter via certified mail with a return receipt provides evidence that the letter was sent and received, which is crucial in case of any disputes or issues.

What is the speaker's advice on settling with a collection agency?

The speaker advises never to settle unless the collection agency agrees to delete the collection from your credit report and to get a deletion letter before making any payment.

What is the potential consequence of making a payment on a collection account?

Making a payment on a collection account can reset the statute of limitations, meaning the seven-year countdown for the collection to fall off the credit report starts anew from the date of payment.