How to Recover a Credit Score From Collections

Collection accounts refer to debt forwarded to a debt collector by an original creditor after several months of non-payment. Having an account in collections will decrease your credit score. You can send the collector money to satisfy the debt, but forwarding payment after a collection doesn't remove the negative item from your credit report. Recovering your credit requires you to improve your credit habits.

Instructions

1

Look at your credit report to see how the debt collector reported the account after receiving your payment. Settling a collection's account does not remove the derogatory item. However, the collector should update your credit report and notify the bureaus that you paid the collection's account.

2

Steer clear of defaults. Every late payment causes further harm to your score after a collection's account. Stay current on all your credit accounts, such as credit cards, mortgages and auto loans, to help recover your credit score. Pay early, or negotiate a new due date if you can't pay by your present deadline.

3

Bring down the balance on your credit cards. Carrying a zero balance or a low balance on credit cards can quickly build your credit score and help reverse the effects of a collection's account.

4

Use credit cards at intervals to keep your accounts active. While cash as a payment method helps prevent excess debt, using credit cards occasionally can have a positive effect on credit. Your credit card company may cease updating your credit history if the card is inactive or dormant. Use the card periodically for low-cost items, and then pay off the balance immediately to keep the account active.

5

Challenge erroneous collection accounts to recover your credit score. Your credit report may include a collection account by an unknown creditor reported in error. Get your free reports every year from annualcreditreport.com, and then check the reports to verify that all information is factually correct. File a dispute with the individual bureaus or Annual Credit Report to have inaccurate information deleted.