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Question By
itsyorkie

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

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Top Contributor
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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
35 People Helped
Helpful to 14 out of 23 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
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
11 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?

1 Contribution
1 Person Helped

I owe only $85

Helpful to 1 out of 1 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
4 People Helped

asking for debt to be removed

Helpful to 4 out of 5 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

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Helpful to 1 out of 1 people

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

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...

2 Contributions
2 People Helped

Credit report differences

Helpful to 1 out of 1 people

Hi.

I am new to all this, and am trying desperately to build m credit. I have three questions:

1)Based on exactly identical information, why are equifax and transunion credit ratings different?

2)I have an amount in collections that the company told me they will delete from my credit report entirely if I pay them $20 over the full amount. Is this worth it and will it reflect on my account positively?

3)How do I get in touch with all the bureaus? Do they have a phone number through which I can call and speak to a live human being? I get very frustrated speaking to computer systems.

I would sincerely appreciate any help extended to me.

Hussain

1 Contribution
5 People Helped

Collection Agency Won't Delete Info.

Helpful to 5 out of 5 people

I've contacted collection agencies that I owe to get them to send me confirmation in writing that the negative info. will be removed from my credit report upon receipt of full payment. They all say that they can't do this. What do I do? Should I just pay them anyway? I'm really trying to improve my credit. All of my accounts are no more than 3 years old.  Thanks in advance.

Top Contributor
22 Contributions
151 People Helped

Helpful to 87 out of 92 people

The problem is getting the collection agency to submit a letter on company letterhead that the debt is paid in full and all obligations have been met. Then the next problem is getting the reporting agencies - Equifax, Experian and TransUnion - to remove it from your records. The last two are more agreeable to making changes, but Equifax starts with the premise that "civilians" are liars. They only accept creditor documents to remove something from your records, though they will allow a consumer statement to explain your position. (Yeah, that will do a lot.)

Reply by
Tashinawin

8 Contributions
139 People Helped
Helpful to 51 out of 57 people

Unfortunately, I'd have to agree that Equifax is a hard case.  I had a situation where I had a missed CC payment.  It was turned over to collections. The bank that originally sent it to collections got bought out by a larger bank.   In the mean time, I had paid off the debt.  However, the original bank turned over records to the larger bank showing that I still owed the debt.  This happened two more times within the space of 2 years while I was trying to correct the problem with the credit reporting agencies.  Each bank reported it as a delinquent account that had been turned over to collections.  And each time one bank took over the other, they closed that account and opened a new one under the new bank's name.  This had the effect of "restarting" the 7 year period that negative reports stay on your credit report.

I sent countless copies of the statements, receipts, bills, etc. to each new bank and filed a report with the credit bureaus.  The credit reporting bureaus then had to "verify" the information with the previous bank which was no longer in existence.   So the Catch-22 continued indefinitely until one bank held on to the account for a few years and it finally disappeared.

Reply by
jesse3445

2 Contributions
33 People Helped
Helpful to 33 out of 37 people

If the bank was no longer in existance, They couldnt verify, and ANY info they cant verify gets the AXE. Those should be deleted

Reply by
briankeys

2 Contributions
1 Person Helped
Helpful to 1 out of 1 people

Whoa, that is harsh. Sorry about that experience :(

Reply by
justd80010

5 Contributions
2 People Helped
Helpful to 1 out of 1 people

I haven't had ANY negative experience with the credit agencies and I've disputed my report 4 times since Nov.2011 and today. As for the collection agencies when I paid them I had a letter stating they would accept a payment of "x" dollars as payment in full and agree to mark the record as "paid in full," I paid with a check or CC so I have a record of the exact payment for "x" amount. I put the letter with proof of payment and submitted it as a dispute and the agencies updated the accounts accordingly all within 30 days. Equifax is the easiest to deal with because a lot of stuff reported on TransUnion and Experian weren't even reported on Equifax, and Equifax showed items "paid" that weren't actually paid. I even attempted to use my Equifax report to dispute the other two unsuccessfully. 

Bashing the agencies isn't helpful. Especially if you know your credit is jacked up by your own hand (and not identity theft for instance). They've all responded in a timely and fair fashion. That's been my experience. 

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