Few things damage a credit score more than a collection account. But what if the collection is inaccurate? Unfortunately, credit reports often contain errors, and an inaccurate collection can significantly lower your score. The good news is you have rights under the Fair Credit Reporting Act (FCRA) to dispute and remove these mistakes.
👉 Related: Your FCRA Credit Rights: What Every Consumer Must Know
How Collections Impact Your Credit Score
When an account goes to collections, it signals to lenders that you failed to repay a debt. As a result, your score may drop anywhere from 50 to 100 points or more.
Factors that make the impact worse include:
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Recent collections (newer ones hurt more than older ones).
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Multiple collection accounts.
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High balances on accounts in collections.
💡 Tip: Even if you eventually pay the collection, it may still remain on your report for up to seven years unless removed.
Why Inaccurate Collections Are So Damaging
Inaccurate collections are especially harmful because they:
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Lower your score unfairly.
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Make it harder to get approved for loans, mortgages, or credit cards.
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May lead to higher interest rates or denied applications.
👉 External Resource: FTC on Disputing Errors in Credit Reports.
Common Reasons for Inaccurate Collections
Errors happen more often than most people think. Some of the most common causes are:
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Debt reported twice (duplicate collections).
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Paid accounts still showing as unpaid.
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Debt that doesn’t belong to you.
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Incorrect balances or account details.
How to Dispute Inaccurate Collections
Thankfully, the FCRA gives you the right to dispute errors with the credit bureaus. Here’s how:
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Get a copy of your credit report from all three bureaus (Experian, Equifax, and TransUnion).
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Identify inaccurate collection accounts.
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Send a written dispute to the credit bureaus with supporting documentation.
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Wait for their response. They must investigate within 30 days.
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Follow up if the item isn’t corrected.
👉 Related: No Response from Credit Bureaus? 4 Steps to Take Now
Protecting Your Credit Moving Forward
While disputes are being investigated, you can still strengthen your credit by:
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Paying bills on time (payment history makes up 35% of your score).
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Keeping balances low (credit utilization under 30%).
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Avoiding new debt applications.
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Using secured credit cards to rebuild credit.
Final Thoughts
Inaccurate collections don’t just hurt your credit score—they hurt your financial opportunities. By disputing errors quickly and building positive credit habits, you can protect your score and regain control of your financial future.
📞 Call The Credit Specialists today at 915-302-2525
🌐 Start repairing your credit now: https://subscribepage.io/AOMFtc
