After checking your credit report, you may find collection accounts listed. It is important to reach out to each collection line on your credit report and try to remove them. The best way to remove these from your report is to ask for a letter of deletion instead of a letter of payment when negotiating your payment plans. You may be wondering what the difference is between the two letters and why one is better than the other.
A letter of payment is simply a letter that alerts the credit bureau that you have paid a collection in full, but it does not remove the collection line from your credit report. This means that the collection line can still affect your credit score, even though you have already paid it in full.
A letter of deletion is a letter from the creditor or collection agency that goes directly to the credit bureau. The letter explains that the collection report was an error and that the collection line should be removed from your report. Once a credit bureau receives the letter, they will remove the collection line items from your credit report, which will benefit your credit score.