Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Creditbuddy15

1 Contribution
20 People Helped
Collections Question
I currently have one account in collections related to a bill from when I was in grad school. The balance is $6900. Credit Karma is reporting my EQ score as 694 and my TU score as 688. Other credit monitoring sites have me no lower than a 682. I wondering if I take out a personal loan to pay off the collection account and through negotiations with the agency, it is removed from m credit reports, what the impact on my score will be? It seems like I might take a hit initially for a new inquiry and the loan itself, but the fact that I will then have no account in collections and the fact that I have added an installment loan to my credit mix and that there will be no added debt would actually help my score. Any thoughts on this?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.