How To Remove Medicredit From Credit Report

Introduction 

Your credit score will drop if you have a collection account on your credit report. If you discover a collection from Medicredit or have started getting calls from them, considering going through the article may help you get your Medicredit collection removed from the credit report. 

Medicredit Overview

Medicredit Corporation has been a debt collecting agency for 42 years. This agency is headquartered in Missouri and is rated A+ by BBB Medicredit has an A+ rating from the Better Business Bureau (BBB). However, it is to be aware of that consumer reviews do not factor into a company’s score. Although they have high grades, Medicredit has complaints from over 200 consumers on the BBB website. 

Things To Do If Medicredit Contacts You.

Medicredit falls in the category of an aggressive debt collection agency. And consumer complaints can validate it. The consumers say that Medicredit is a debt collection agency that is very difficult to work with. Therefore, you can consider the following three steps if you have a Medicredit collection on your report. 

Verify If The Debt Is Legit

At first, it is crucial to confirm if the alleged debt from the collection agency is legit. The Federal Trade Commission (FTC) states that 1 to 5 Americans, only 1 has an inaccurate item on their credit report. Therefore, not trusting a collection account on the credit report is valid. In addition, the fair Debt Collection Practices Act (FDCPA) states that a debt collection agency should send a validation in the written form of the debt within five days of connecting you.

If you find any information in the written validation inaccurate, you have the legal right to confirm your debt’s accuracy. You can inform them by writing them a debt validation letter. By law, you should send the letter to the collection agency in less than 30 days after you have received the written notice. If the debt collection agency or Medicredit cannot verify your debt, they must delete the account from your report by law.

Dispute The Debt

It does not matter if your debt is valid or invalid. However, you must follow the following steps. It is because you have a slim chance that Medicredt will remove your collection account if you press hard on them.

The BBB profile on Medicredit states that the debt collection agency claims an average of 200,000 customers contact them in a month. With such a large number, they have many accounts to manage. Therefore mistakes are inevitable where they might have missing paperwork or inaccurate entries in credit reports. Both the things – their mistakes and missing paperwork might work to your advantage to remove your collection account from your report.

Luckily, disputing a debt is similar to sending a letter to them. First, select a certified mail to send the dispute so that you have a record of your sent dispute. In addition, while sending the dispute, support your claim with valid proof of your documents.

Medicredit will delete the collection account from your report if it cannot back up its claim. However, if your account is valid, you can request them to pay for deletion.

Negotiate A Pay For Delete

If Medicredit responds with proof that you have a real debt, you can remove or try to negotiate a pay to delete your account. It means that you agree to pay the money in exchange for removing the collection account from the credit report.

If you choose this route, negotiate with the Medicredit collection agency and not the bureaus. It is because the credit bureaus might reply that they have no right to delete any negative item from the credit report. Therefore, it is always good to approach the debt collector or the creditor.

Send a letter to Medicredit, requesting pay for delete. In the letter, make sure to be clear that you are offering to pay in exchange for deleting the account from the credit report.

Even if you follow the process correctly, your debt might appear on your report as a separate account but under the actual lender’s name. In this case, you will again need to contact the original lender to remove it from your credit report in a separate letter.

What To Do If Your Medicredit Is Invalid?

If the Medicredit collection on your credit report is invalid, you should immediately dispute it. You must therefore send a dispute letter to the credit bureaus as well as Medicredit. 

Is It Important To Seek Professional Help To Remove Medicredit From Credit Report?

You can definitely dispute your negative items yourself. However, you will find people who are willing to work with a credit repair company. It can be considered an excellent option if you lack time to pay your full attention to the process of dispute.

However, before signing on with a credit repair company, you must do your homework by researching a reputable credit repair company. It is because all credit repair companies do not deliver their services on their promises, and you will find some companies to be outright scams. At the same time, a renowned company can assist you with the process to help you receive a better credit score. 

Is It Possible To Pay The Original Creditor Instead Of the Collection Agency?

When your debt is with a collection agency, it generally means that the debt is sold to the debt collection agency. It means now the collection agent is the owner of your debt. Therefore, you should pay off your repayment amount to the agency.

But on the BBB profile page, Medicredit states that it does not purchase the customer’s debt. Rather, the lenders send the debts to Medicredit to collect them. So in this scenario, your original creditor still owns your account, which means you need to work with your original lender to clear or delete the debt. 

Moreover, your debt might show up on your report two times. First, it will appear as a collection account under Medicredit’s name. Secondly, it will appear under the original lender’s name. If this is the scenario, you should cover both the credit bureau and Medicredit. 

Before deciding to pay the debts and before negotiating, determine the debt owner. Furthermore, do not send money unless you get an acknowledgment of ownership from the Medicredit or the original lender. 

How Long Can Multiple Accounts Impact Your Credit?

It is to note that your collection account will stay for seven years on your credit report. However, the time can increase when you pay the debt before seven years expire.

On the other hand, if you have many accounts either from Medicredit or another debt collection agency, all the collection accounts will be reported as their own line item on your credit report. Therefore, if you have more collection accounts on your report, you will have a negative impact on your credit score. 

How Long Can A Debt Collector Legally Pursue Old Debt?

Each state has different laws. The state sets a period for the debt collector to sue a debtor in court. The time period can range from 3 years to 10 years after the delinquency starts. 

Does Medicredit Report To Credit Bureaus?

Medicredit reports to all the main credit agencies. Before disputing a collection account, ensure that you dispute only with the credit bureaus that have listed it. For instance, if your collection account appears only on your Experian report, you will need to dispute only with Experian and not with TransUnion and Equifax. 

Quick Ways To Check Your Credit Score

You can easily check your credit score. But, you might be amazed to know that they are both free. 

Discover Credit Scorecard

Signing up for this scorecard is free. After signing up, you can view your FICO® once in 30 days. Besides, you do require a Discover card to participate in it. 

Credit Karma

When you sign up for this account, you can view your VantageScore. To join it, you do not need to pay any fee, but you might require to provide your personal details to verify your identity.

As CreditKarma uses the VantageScore credit model, so you can only view your VantageScore and not the FICO® score. After successfully signing up, you might start receiving offers for credit cards and other products. 

Is Medicredit Legit?

Medicredit is a legitimate agency based in St. Louis, MO. 

Conclusion 

Remember that collection accounts on your credit report can drop your credit score. Therefore, address them immediately. When you start receiving calls or written notice from the Medicredit collection, follow the verification and dispute steps to remove them from your credit report.