141 People Helped
Member Since: January 2014
I totally disagree with Bluesky380. You can pay off all of your accounts for sure. But under no circumstances do you want to CLOSE those accounts. This will lower your "Average Age of Accounts" and it will raise your "Credit Utilization" to higher levels than it would with more accounts open. Also, your score is affected by how many accounts you have as well. Closing accounts is a terrible idea.
SaveMefromDebt's reply was:
In general. A debt should only show up 1 time. You can dispute with the credit reporting agency. As part of your dispute, you'll claim that the debt collector does not have legal standing to collect on the debt. In fact, you could do this for both of them at the same time to show that they are the same debt. Likely, one will be verified, the other deleted.
SaveMefromDebt's response was:
This might be a medical related debt. I'd recommend that you send a letter to the credit reporting agency(ies) that are reporting this debt. Explain that you have been unable to get in contact with this collector to dispute the debt. Also, let them know that due to a recent settlement that each of the credit reporting agencies have made with the Attorney General of New York, medical related debt is not supposed to be listed any more. (technically, they have 3 years to implement). I'd recommend you send a new letter every 90 days until it gets done.
The other option, after you send a letter to the reporting agencies is that the collection agency will contact you. At that point you can negotiate for a "Pay For Delete". Collection Agencies (esp. when medical is involved) are highly receptive to this. Get this in writing before you pay anything.
A debt will fall off after 7 years of "date of first deliquency". There is a misconception that partially paying a debt will "reset" the 7 year clock, that is just not true.
If you have a JUDGMENT against you for this debt, it basically will never go away (until 7 years after paid in full). Do not let it get that far.
I signed up for this card in June with a CK score of 630. I was approved for a $300 credit limit. I was told that I was in the "steps" program and that after 6 months, I would unlock an additional $200 in credit line. Turns out, they've unlocked this much earlier, and have given me much more. This morning, my credit line is $3300, with a CK score of 718. I expect another jump in my score based entirely on my credit utilization dropping. For 6 months, I made sure to only charge $30-35 on this a month, keeping utilization in check. Now I will be able to have car insurance out payed from this card without worry (and earning cash back rewards)!!
It's actually a new feature for CreditKarma to report the Equifax scores (it's been about 3 months). Prior to that, it was just TransUnion. Not sure why specifically CK doesn't report the Experian scores, but it's likely to do with behind the scenes legalities...
Keep in mind that the scores on this site are "VantageScore 3.0" and not one of the variations of "FICO" that majority of credit issuers use. This site is more of a learning site, allowing you to also monitor changes to your score from one week to another. Any dramatic change in score is a result of something "happening" on your credit report. Helps you to keep a closer eye on things.
Just my food for thought... I hope my answer helped you.
For now, CreditKarma only has partnerships with TransUnion (as they have from the very beginning) and Equifax (since mid January).
I would be very careful mentioning Experian and the lack of a listing to the other 2 credit reporting agencies. Two real options.
1. You can do a general dispute with the CRAs if you haven't already, forcing the Equifax and TU to verify everything. It's possible that the debt collector will not validate.
2. What state are you in? What is the Statute of Limitations for collecting debt? In my state of CO, the SOL is 6 years to collect on a debt. When I have disputed with the creditor directly, pointing out that their "alleged" debt is older than the SOL allows them to collect on, it tends to work. They'll send a form letter still wanting to collect, but it will have a phrase somewhere at the bottom "...due to the age of the debt, we will not sue you or submit this to a credit reporting agency". With that letter, you can make copies, highlighting that pertinent line, and submit to Equifax and TU along with a general dispute about the debt. (This will only work if the debt is older than the SOL).
I hope that this helps you.
Is the debt ACTUALLY yours? If not, you can dispute this ahead of time as well as at the court
Is the debt within the Stature of Limitations in your state? You'll have to look this one up, but many states are less than the 7 years that a debt can be reported on your credit report. If this debt IS yours, the date of first deliquency is older than the statute of limitations, you can dispute on this alone.
Many debt collectors hope that you don't appear in court. It is much easier to get what they want in a default (you didn't appear) judgment than it is to actually prove their case.
If this debt IS yours, and the debt IS within the SOL you will want to attempt to settle. This might be a payment plan, this might be settling for less (but with a lump sum payment), this might be asking for a "Pay for Delete". These options dissappear once the court date happens. Only let it get that far if you have a winnable case. Otherwise, you'll be on the hook for court costs and lawyer fees as well.
You can always try for that. It's quite "funny" that the balance is $112. Any collection under $100 has no negative effect on your credit score once paid in full. Do not admit that this debt is yours, instead you want to say something along the lines of, "...for $112 it is hardly worth it for me to dispute this further, that you'd be willing to pay the debt for a complete removal from your credit reports. "
And that you want that in writing.