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mjmcgove

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What to do with my 2 accounts in collections?
I have 2 accounts in collections, one was last reported august 31st of this year and one was last reported may of this year. they are easily payable, the total amount between the two is $300. I want to know the best course of action in terms of my credit score. currently my trans union score is around 650, but my equifax report is at 575. Is there any hope to getting my score up? it says that these are hurting my score, this is why I'm wondering the best course of action. I am looking to buy a vehicle this year, so please take that into consideration as well.

thanks,
Mike

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No one wants to lend money to someone who has unpaid bills, keep that in mind when you go to buy that vehicle later this year.  You have three options on those colletions and they end u- with the number one goal.  Pay them off.  Fist, Call them and ask how much they would accept to consider them paid in full.  If you tell them that you can write them a check today, there will be negotiation.  (Hint)  If you in a financial pinch about to loose your apartment, now working and will have to borrow the money from Aunt Sally, they may be more willing to negotiate.  When you get a figure and it is not the full amount, your second negotiateion comes into play.  Ask them how much extra money you will have to get from Aunt Sally for them to be deleted as if they never occurred. Then ask them to send you a letter that you can take to Aunt Sally spelling out those terms.  As soon as you get the letter, make a copy of it, write a check and sent it back to them registered mail that day.  No need for Aunt Sally to write a check.   If they were willing to delete the debt from your record, you goal has been achieved.  if they would not delete and negotiated, you saved a few dollars.   No matter how much you pay, either full amount or a negotiated settlement, unless they delete, it will remain on your file for the next 7 years.  if they won't negotiate a lower amount and want payment in full, you can still negotiate a pay to delete for the debt.  Even if you had to pay a few extra dollars, whats it worth to you to restore your credit reputation.  Personally, I figure an extra $50 per collecion reasonable in my books, its your decision to make.

Somethign for others to consider, the idea is to work with the creditor before it makes it to your credit report.  Its not reported as a colleciton until you don't work with them.   As many have learned, through the resouces here as well as the many questions, the biggest damage to a credit profile is a colleciton. Always work with your creditor before it makes its way to collection.  It would be better to close a 10 year old credit card being paid out and payment terms changed then to have $50 make its way to collections.

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Reply by
faidros

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Sorry for the typos, I sure wished cut and paste was available.   Page timed out twice so I was typing really fast to beat the clock.

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another question

my only question to this is, do i just up and call them and basically aknowledge the debt? and then ask them if they will delete based on me paying in full? 

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