Hi, I had a 3 year old collection account. During that time, I had negotiated settlement with the collection agency and settled for less than the full balance. Obviously the account shows up in my credit report and seriously affects my credit rating. This account will continue to stay in my report for another 4 years, which seriously jeopardizes my chances to secure good interest rates on loans. How can I improve this situation? Can I try to contact the lender and try to reinstate this old account and request him to withdraw collection report? Please advise. Many thanks! Sam
What is your current history like? If you have a strong, long history and your only negative is three years ago, the impact to your score right now is probably not that great.
Thanks for your advice. This along with another account that was put under collection around the same time (3 years ago) are the only negative items in my report. My current state is very good as I pay my balances off on time and maintain a good debt:credit ratio. But my current FICO score is around 680 for all three agencies, which is not that great. I have been trying to improve my scores over past 1 year but there is not much improvement, primarily because of those accounts still in the report. Also, whenever I apply for credit or housing, I am questioned on those accounts. I cannot dispute the account as those accounts are legitimate and belong to me. What can I do to improve my score? I am really getting desperate in this situation. thanks, Samit
Huh? The fact that it was yours means nothing. The underlying debt is distinct from the reporting of the matter and I would be shocked if something wasn't inaccurate or incomplete about it. 680 isn't bad but, you need this to come off and maybe alter a few things here and there.
Thanks. But what can I do in this matter. If I file a dispute, it will get rejected when they verify my account. -Sam
Are you disputing something generic like "not mine" or are you identifying specific incorrect reporting. You would be amazed at how the incorrect reporting of a collection account can affect your score greater than if it was accurately reporting.
Make sure you have your reports from the individual bureaus so you know exactly how it is reporting on each one. The trimerge reports aren't always accurate in all respects. Then, as the others have said, dispute any part of the tradeline that is not reporting accurately. 680 is actually a very good score and should qualify you for prime credit just about anywhere.
