Looking for advice on best course of action. I'm separated for two years now and trying to rebuild my credit. Three years ago I was in a car accident and used the insurance money to leave a bad marriage. I never paid the $1000 bill for the ambulance and emt's and now after all this time it's been sent to collections and brought my score down 45 points. I got a letter from the collection agency with an offer to settle for half the amount. I could actually come up with that, but wonder if that is the best solution for my credit. If I take the deal will the account come off my credit or will it still show for seven years? Should I try to go to the original creditor and work with them? Just trying to figure out what is going to have the better impact on my score. Any advice would be appreciated!
You can reach out to the original creditor, but that may or may not work. Did the SELL the debt or are they employing the collection agency to try to get it? Regardless, you have to find out who OWNS the debt and work with THEM. As far as removal: You should negotiate for removal (completely) as part of your deal. Payment of X = satisfied IN FULL and COMPLETE removal of all activity from all three CRAs. While the law requires creditors to only report ACCURATE information, it doesn't require them TO report (they can choose to NOT report, even after the fact). Again, negotiate for removal up front, before you pay, and get the agreement IN WRITING.
