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
itsyorkie

0 Contributions
0 People Helped
If I pay off a collection account will my credit score improve?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 11-20 of 152Results per page: 5 | 10 | 25Page 2 of 16   Previous | Next
1 Contribution
1 Person Helped

Paying off debt collections

Helpful to 1 out of 1 people

I was wondering, I have collections that show on Equifax that doesn't show on transunion, is there somehow someway where I can dispute that & take it off Equifax!? Also wanted to know if I call the collections agency & ask them if I pay the debt off to take it off my credit report how can o be sure they would follow through on their word

1 Contribution
1 Person Helped

Question

Helpful to 1 out of 1 people

Do you send the letter before or after the balance is paid off ?

1 Contribution
32 People Helped

Haven't tried it yet

Helpful to 32 out of 34 people

I found this pay for deletion sample letter http://www.credityoda.com/pay-for-delete-letter.html. I have not tried it yet but it looks good.

Reply by
Esomirp7

4 Contributions
11 People Helped
Helpful to 6 out of 7 people

I'm using it now. Will be mailing letters tommorow and will update any responses I get. Thanks!

Top Contributor
10 Contributions
101 People Helped

Helpful to 75 out of 85 people

Yes your score will improve once it's paid off. Make sure you ask for pay to delete option. It is always good to negotiate the amount with them and ask for paid in full letter as a proof that it has been paid in full. 1 collection account will increase up too 30 points on your credit report. It takes almost 30 days to update. If you settle the amount less then what you owed it will still impact on your report as negative. You can always dispute the amount with credit agency and have them update the record with in 30 days. Hope it helps. 

Reply by
lmj1968

5 Contributions
38 People Helped
Helpful to 17 out of 26 people

I paid off some old medical bills which were in collections last year. My credit report (Equifax) shows them as having a 0 balance/paid, but they are still having a negative impact on my credit. I didn't know I should have a letter from the collection agency for my protection at the time....how can I get this to stop negatively impacting my credit??

1 Contribution
2 People Helped

I owe only $85

Helpful to 2 out of 2 people

it has been i colections for about a year or two i have a crdit crd got aproved for a loan and many other things i payed my cridit cards good i paid my loan off...and now i see this its not that far away to go to the collection place. if i go there and pay them in cash in full there stupid $85 can i get a statment from there end saying that the accounts been payed in full..Btw they have yet to contact me in any way.by mail nor by phone.

1 Contribution
6 People Helped

asking for debt to be removed

Helpful to 6 out of 7 people

I had an open collection account that was on my report. This is how I handled getting it removed.

I never admitted to the debt and asked that the collection company to stop calling my job. They continued calling so I put in a formal complaint to the Consumer Financial Protection Bureau via their website. They in turn sent the complaint to the collection company, which had to respond within 15 days. In the response from the collection company, it stated they wanted to be in complaince and agreed to totally remove from all 3 agencies once payment was made. Before I sent payment, i emailed the collection company with an attachment of their response to my complaint, and asked for their agreement to remove to be put on their letterhead. Within 7 days, I received that letter. I called, made full payment of $175.00 and in 2 weeks it was removed from my credit. Score jumped 28 points. 

Reply by
horsejumper23

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

Enter Your ReplyWhat did your complaint to the consumer financial protection bureau include?

1 Contribution
1 Person Helped

Collection Notices by Mail

Helpful to 1 out of 1 people

Im trying to get my credit fixed up as well as everyone else. I recieve collections notices by mail, but they are not on my credit report. They are for ie: old utility bill or something I ordered. Do those effect you when trying to buy a home or car? I do have one cable bill on my credit report thats been there since 2011, do I ride it out or do I try and settle? The debt is $285. Do I try them with a 1/4, 1/3, 1/2? Everything else on my credit report shows me having excellent payment history the last 4 years. I feel this could hold me back. Thank you in advance!!

1 Contribution
12 People Helped

what if the creditor refuses to send.

Helpful to 12 out of 15 people

the collections agency said they do not handle credit information that we would have to talk to the original creditor... we talk to the original creditor and  they refused  to send a letter of promise. i was told that they cant send thing of sutch a nature and that once the account has been paid they send a letter of a 0 balance. my question is how can i get them to send a letter promising before i make a payment? or would it be better to wait for that letter and if they dont send it after 30 days dispute it?

3 Contributions
17 People Helped

removing collection items

Helpful to 1 out of 1 people

I am trying to settle up my credit score and rebuild some credit. We recently had a positive change in circumstance and while I do not need anything other than a bank account, score is very poor, I have dealt only with cash for 14 years while I fixed and waited out certain debts. 2 remain from 2012 medical bills and the bank will not give me a checking account until they are removed. I have no other anything on my report.  I have no problem paying them, they total less than $800. The lesser one, under 300 I called and they agreed to remove it when they receive payment, but said it could take 30-90 days, is there anyway to force this issue to go faster?  If I dispute the second one, which I have no idea of the date of services, do I put that I do not recognize this bill or what? And is that faster way to remove than paying them off?

3 Contributions
2 People Helped

my situation is unique, please read

Helpful to 2 out of 2 people

my collections issue is with an electric bill. I didnt know it existed because i vacated the residence and my brother assumed the residence with the landlords permission. I tried to help my brother by leaving electric in my name. anyways the short of it is that i didnt know it even existed until i got onto credit karma. ( thank goodness for you guys) anyways, Ive contacted the collections agency (YEAH, YOU READ THAT RIGHT, I CALLED THEM)  i mailed a partial payment. the current balance doesnt reflect my payment. it was 1338, i paid 100. it is showing a balance of 614. they dont ever call me or contact me by mail. im SURE, due to my rare last name, that they could easily find me if they wanted to and fill my mailbox with harassing letters but they dont.... I wanna clear my conscience and get this off my credit report as i see it there every month. I'll deal with my brother and the balance he owes me later but seriously, what should I do about this.... the water is so murky with choices regarding what i should do...

Results 11-20 of 152Results per page: 5 | 10 | 25Page 2 of 16   Previous | Next

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.