Collection accounts on any of your three credit reports can cause serious problems when it comes time to use your credit rating to make a big purchase such as a car or home.
Some lenders will take a look at just one of your three reports but most want to see the contents on all three.
For this reason you want to make sure that you work to improve each one separately.
The secret to having collection accounts removed from your report lies in the law that governs how the main bureaus input accounts on your files, it's known as the Fair Credit Reporting Act, (FCRA).
Collection agencies simply tell the bureaus what information to put on a consumers report, and within a few days it shows up on the person's file.
The problem with this is you (the consumer) never got to be part of this process.
This is where writing a dispute letter helps, the FCRA allows you to challenge any accounts that you think are incorrect or misleading.
The bureaus at that point must investigate the account in question and request proof that it is valid and accurate.
Without this proof they must delete the entry from your files.
In theory it's that simple but you must use the proper language in your letter to let the bureaus know that you are aware of how the process works.
That's the only way you will see the desired result of a restored credit rating.
By making sure your letter references your awareness of the law, and the process that must be followed, Equifax.
, Transunion and Experian will take your dispute letter with the seriousness it deserves.