If the credit bureau or the furnisher agrees with your claim, the error should be removed.

#2. Send a pay-for-delete letter

A "pay for delete" letter is a formal request to the collection agency. In this case, you offer to pay the debt in exchange for them removing the collection from your credit report. 

Collectors are not required by law to accept this request. However, some may agree to your request for a pay-for-delete arrangement because they want to get paid. If they agree, make sure to get the agreement in writing before paying.

#3. Request a goodwill deletion

If you've already paid off the collection, you can ask for a "goodwill deletion". 

Write to the creditor or collection agency and explain your situation. Request that they remove the collection from your credit report as a gesture of goodwill.

It is a good idea to include a brief description of how your circumstances have changed since the missed payment. 

There is no guarantee that your request for goodwill deletion of a collection mark on your report will be approved, but there is no harm in asking. A record of on-time payments since the debt was paid will help your case.

#4. Wait for the collection account to fall off your credit report 

If all other options fail, the collection account will eventually drop off your credit report after seven years. While this may seem like a long time, the negative impact of older items lessens over time.

How to Remove Paid Collections from My Credit Report

Even if you pay off a collection account, it can remain on your report for up to seven years.

Some newer credit scoring models, like FICO 9, 10, and VantageScore 3.0, 4.0 do not consider collection accounts that you have paid already. However, several lending institutions continue to rely on older versions of scoring models (e.g., FICO 8). So, even when you make the payment, the collection mark can continue to harm your credit. In the case of older models, paid collection accounts do not hurt your credit score if the collection amount is less than $100.

Unfortunately, if the collection is accurate, credit bureaus cannot legally delete it until at least seven years old. The best thing you can do is wait it out; the older it gets, the less it impacts your credit score.

How Long Will Collection Accounts Remain On My Report?

This negative mark can remain on your credit report for up to seven years from the date of the original delinquency. The clock doesn’t restart when the debt is sold to a collection agency. 

For example, if your last on-time payment was on January 1st and the debt was sent to collections after 90 days, the seven-year clock starts ticking in January, not April. Even if you pay it off, it can remain on your report for the full seven years.

Medical debt is an exception. Credit bureaus must wait one year before reporting medical debt in collections. Also, paid medical collections no longer appear on credit reports.

How Do Collection Agencies Work?

Collection agencies are hired by creditors to recover debts. Sometimes, a collection agency may buy the debt from the original creditor. 

They will then try to collect the debt while adhering to the Fair Debt Collection Practices Act (FDCPA). This act protects consumers from unfair debt collection practices.

How can removing a collection account Affect your credit score?

Removing a collection account from your credit report will likely improve your credit score. 

Collection accounts are negative items that can deter lenders, so removing them will likely help. Even if you pay off a collection, it’s still beneficial to try to have it removed.