I am about to purchase my first home. However I have a couple of collections that might stand in the way. One is for $25 for a returned check that will come off my credit early next year. Another is for $125 that will come off June of next year. The $125 collection belongs to NCO. They told me that if I would pay the collection and then dispute it to the credit agencies that they would report it Paid In Full and it would come off my credit profile. I asked them for a letter agreeing to those terms before I paid and they said they would send it out. Will I get a better credit score now by paying these collections or should I just sit and wait until they come off next year. I need the best credit score that I can get now. What should I do. Please help.
We've all seen that paying a collection as old as that does little to boost your score. I say dispute!
My advice is don't pay unless the lender requires you to for the home purchase. You only have a year left until they fall off your reports. Also, I wouldn't believe anything NCO says. Collection agencies are synonymous with lying. Dani
I've heard different stories on this. 1. Mortgages only look at CA's unpaid OVER $100. 2. Mortgages look at ALL unpaid CA's. As to NCO, did they say it would report Paid in Full or it would be removed? Get the word "delete" in writing from NCO, or tell them to take the $125 and stick it. DON"T tell them you're buying a house. If you have time dispute it, if not then you can either pay for NO deletion or try to negotiate for deletion. If they say no, ask for 50% off the amount!
They only told me that they would report it as paid in full. I think I am not going to pay them. The amount is miniscule but if I pay I might start the 7 year clock again. I already disputed and they verified.
They verified to make sure that they can continue to report the account legally. And they report the account to pressure you to pay up. Once they have received the money, they have no reason to keep verifying and going through the hoops, their mission is accomplished, they got the money. My suggestion: Go ahead and pay them for two reasons-You will have peace of mind AND you STILL can dispute, they probably will not verify. They have other low-hanging fruit to concentrate on how to pluck.
Most mortgages will not require you to pay anything under $250 that is like 95% of lenders... and in your case the SOL has passed to sue you.. the only thing it may affect at this point is your credit score.. I would dispute the collections to see if they get deleted... then while in your mortgage process tell them that you are disputing it and they are not yours.. Kev
Re: Should I pay my 6 year old coll They can't start the 7-year clock again - it's against the rules. You said the debts were 6 years old - what is the SOL for these?
Re: Should I pay my 6 year old coll the longest statute of limitations is 4 years in california. If a case involves an oral contract, the statute of limitations is up to two years from the date the contract was breached. If a case involves a written contract, the statute of limitations is up to four years from the date the contract was breached. http://www.courtinfo.ca.gov/selfhelp/smallclaims/sclimitations.htm Dispute them. Dispute. Dispute. and Dispute. Kev
Re: Should I pay my 6 year old coll folide I see your experian score is 604.. You should dispute all of your inquiries to raise your score over 620. anything over 620 is an A paper loan. Not best rates but they use your middle score and you should be able to qualify easy. Kev real estate guru club (j/k)
