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
gmcdude6793

0 Contributions
0 People Helped
Need help with collections!
I am trying to clean up my credit report because I am looking to take out a loan for a car. I have one collection on my report in the open status. I just got off the phone with them and agreed to a payment plan to settle the debt. Number one; did I make a mistake in doing this, this way? And number two; what kind of problems will I be looking at with the credit agencies to get this wiped off of my report and boost my score? I have seen some other posts with some information, but they really didn't fit well with my situation. I am afraid that I went about this the easy way and the collection agency just rooked me. What kind of documentation do I need and to whom do I need to send it to, to fix my problem? Any help would be greatly appreciated. Thank you!

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1136 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

If you made an agreement with the collection company you may have just reset the "Statute of Limitations" to be sued for the debt. You would have to look up your state laws to decide whether a verbal agreement is binding or not or speak with a consumer law attorney to find out. Paying the debt will not help your credit scores one iota in the short term, but it would help them in the long term to keep the collection from updating which dings a score continually. With scoring a collection is a collection whether paid or unpaid. Getting the collection paid vs unpaid would look better though under manual review of your credit, but the problem is most companies will have a computer decide whether you get approved or not. What you should have done is tried to get a "Pay For Delete Agreement" but usually you would have to pay the amount in full right away to get an agreement like that. I am not sure what to advise at this point, beside taking the time to do some extensive reading about your situation, but if you made an agreement you may be stuck with it. Be aware that nothing restarts the credit reporting time period though, so you are safe there.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   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.