If your student loan is sold to a collection agency you can remove it — if it's reported inaccurately. The FTC suggests that 1 in 5 credit reports have an inaccurately reported item, so the odds are high you can erase it. To erase it, you need to file a dispute — something an expert like Credit Glory makes super simple.
Why was your student loan sold to a collection agency?
If you fall behind on your student loan payments, eventually it goes into collections. What does this mean for you? The original loan servicer sells it to a collection agency, which then tries to collect payment. The worst part? It adds stress to your life and dismantles your credit.
How can collections destroy your credit? (& can you remove them)
When your student loan is transferred to a collection agency, it immediately impacts your credit. What happens? The biggest impact is an account on your credit report showing as "in collections." That's not even the worst part!
Collections agencies are notorious for reporting incorrect information. This includes:
- Account balances
The FTC estimates that 20% of all credit reports contain (at least) an error! The good news? If the collection agency reports your student loan (or any negative items) inaccurately, it's your right to dispute them. You can make disputing super easy when you choose to work with an expert (like Credit Glory) — but you can also do it on your own.
How to remove inaccurate negative items from collection agencies yourself (& how a pro makes it way easier)
Here's how you can dispute inaccurate negative items on your own (& why it's no cakewalk):
Step 1: Check your credit report for inaccurate items
Disputing negative items starts with identifying inaccurate reporting. Wondering how to find errors? Look at the detailed info for negative items from all 3 credit reports. Sound like too much work? An expert like Credit Glory makes the process a breeze.
Step 2: Write a dispute letter
There are several options for drafting a dispute letter. You can start from scratch — or find a template online. The tricky part is finding a legit template — especially when Google gives over 74 million search results! On the other hand, a partner (like Credit Glory) can simplify the process with proven results.
Step 3: Collect supporting docs
If you find a legit sample letter, you need to clearly state your name, address, and what you are disputing. Then collect all relevant documents to support your claim. A key here is ensuring you send copies — not originals.
Step 4: Wait for a decision
If you manage to write a letter, compile the documents, and find out where to send your letter — the last step is waiting for results. Assuming you did everything perfectly, the dispute results are sent to you in writing. The result? After a long wait — sometimes months — the record may be removed.
Your easiest alternative to a DIY dispute is Credit Glory
For a simplified and painless dispute process, working with a pro (like Credit Glory) is the way to go. A pro knows disputing techniques and how to support your claim. Then provides excellent support along the way. When that pro is Credit Glory, you also have confidence backed by high ratings (4.9/5.0 Stars) from thousands of satisfied customers.
Credit Glory makes it easy for you to dispute inaccurate items!
Disputing negative items on your credit report is hard work! It takes a lot of time, effort, organization, and follow up. The good news? Our team of credit repair professionals is here to simplify everything! Let your dedicated credit repair expert relieve you of the stress, hassle, and time needed to fight your inaccuracies and boost your credit score (FAST!)
Credit Glory is a credit repair company that empowers consumers with the opportunity and knowledge to reach their financial dreams in 2021 and beyond.
Call us at (855) 938-3044 or set up a consultation to get started, today!