Collection on CR

Although I'm pretty new myself, I'd say don't pay it. Paying it will not raise your scores and could (will) make it harder to remove it from your report.

What type of dept is it? How old? etc.

 

Paying the collection will not make your score go up. Before you pay the collection, negotiate to get it deleted in return for payment. They may go for this. I know this has worked for some people, to get the CA to agree not to verify the account after you pay if you dispute it with the CRAs.

Whatever they agree to get it writing.

 

Your score may not raise if you pay if, but if you try to get a mortgage and many auto/boat loans, they will insist all collections and charge-off's be paid in full.. Pay it..

jmart

 

I wouldn't do anything without requesting that the CA validate the account first. Check out the library links for various letters you can customize to send out. Many, many times they cannot prove the debt and if they can't, they have to delete it.

That would be my suggestion for your first step. Then I would recommend that you read, read, read


L

 

What was the original debt for and how old is it? Also, what company did you owe the money to? You will find that some keep records forever, and others can't find anything, even recent. If it is one of the latter, you will definately want to try validation.

 

Hi K&J,

Welcome to the board. First you said you "had no idea you had it".

Does this mean it's not your debt? Whether it's yours or not you do NOT just want to go pay it. This will not help you. Begin with studying this board and the laws to get a good foundation of what you're doing. Study the FCRA and FDCPA.

If things are quiet right now just leave it that way for about your first month on the board. Believe me it'll take that long if you study like you should. Then we'll begin to formulate a strategy for you.

 

Pay it?

What kind of advice is that?

She/he didn't even mention if the debt was truly theirs to begin with. Either way whether it is theirs or not, you're saying they should just pay it, and not make any attempt at getting the CA to validate, or even make a settlement w/ deletion offer? That way, their score will practically stay the same (we all know paying a collection account has little to no effect on your score, it's the deletion that counts), APR's on current cards could potentially be jacked, and interest rates on future loans (like a mortgage, and auto loans) (not that they even made mention to either of these loans in the first place) will now be higher because of a derogatory account that might not have even been theirs to begin with.

Following this advice, and just 'paying it', won't get them far.

 

Exactly what I was getting ready to write. Terrible advice to just pay it.

 

Not only will paying it not change your score, it will re-age the account and date of last activity to potentially stay on your CR for another 7 years. Do not shoot yourself in the foot.

 

It will not re-age the account.

Gib