Paid in Full credit affect..
Date: Wed, 09/01/2010 - 15:24
I found out I had an outstanding balance of $100 from a year ago. It was submitted to the collections agency last week and I was notified via my Credit Report that I had signed up for. I called the agency and they said they cannot legally delete the negative mark on my credit score. It's frustrating because I dropped 60 points for something I had little knowledge. I never received a letter, although they state that they have sent letters.
The collections agency said that paying it in full in the first month of receiving the collections agency notification would look good on my credit report. My question is, does this help my credit score? Because I doubt people looking at my credit look at anything other than the score.
Are there any steps I can go through to get this removed? It's just a shame $100 is affecting my mortgage rates. It's such a small amount of money and I would have paid it off if I had known it was looming ready to bite my butt.
So basically:
1. Does paying it off in full in the first month help?
2. Will my score increase at all since it's a newer debt?
3. What steps can I take to get those 60 points back? I was at 690ish area and now at around 640.
The collections agency said that paying it in full in the first month of receiving the collections agency notification would look good on my credit report. My question is, does this help my credit score? Because I doubt people looking at my credit look at anything other than the score.
Are there any steps I can go through to get this removed? It's just a shame $100 is affecting my mortgage rates. It's such a small amount of money and I would have paid it off if I had known it was looming ready to bite my butt.
So basically:
1. Does paying it off in full in the first month help?
2. Will my score increase at all since it's a newer debt?
3. What steps can I take to get those 60 points back? I was at 690ish area and now at around 640.
BTW, is this considered a delinquent account? And if so, would p
BTW, is this considered a delinquent account? And if so, would paying it off remove that, or does that stay for 7 years as well?
Paying this account will not help your credit score. Paid & unp
Paying this account will not help your credit score. Paid & unpaid collections are viewed the same in credit scoring.
Your best course of action would be to flood the collection agency with Pay-for -Delet requests. Get them to agree, to delete the account in return for payment. It may take weeks or months and several letters to several different people. But this is the best course of action.