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 Paying Your Bills
Profile Image

Question By
acdcme1421

0 Contributions
0 People Helped
what guarantee to i have that the colection agency will mark paid on a bill that i make good at

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
10 Contributions
5 People Helped

I would not pay the bill (at first). Also paying a bill in collections does not remove it from your credit report and it is still used in certain FICO models. I believe the best way to handle past collections is to dispute the collections with the credit bureaus. Do not do online disputes. Send a letter certified return receipt. You dont have to add a lot of legalese. Just say you noticed the collection was reported wrong on the report and why (not your account etc). The credit bureau has 30 days to investigate then it comes off of your report. Only after the debt is confirmed, do you engage in the repayment of the debt. The best choice is to have the original company take the debt back from the collection agency (easiest done if you never got the bill). If that fails, I would negotiate with the collection agency and negotiate a pay for deletion letter. Basically that in return for payment, they agree to remove the information from your credit report (if you live in a one party consent state surreptitiously record the phone call). Then negotiate a % of the debt. They are happy to receive about 30% and over the moon to get 50% but do not make a partial payment because that can reset the statute of limitations on their ability to collect the debt.

These are the strategies that I used with collection accounts and they worked for me.

I started 4 months ago and my credit score went from 560 to 667 as of this AM. I also got a secured credit card and now 2 low limit unsecured cards. I should be over 700 by the end of February but definitely by the end of March.

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.