Hi. I have been trying to fix my credit over the last few years and my credit is still not the best but it has come along way from the 512 it once was. Its now a 643 transunion and a 655 equifax.
I applied for a auto loan back in 2009 through my credit union. At the time, my credit report showed a unpaid collection to Progressive for $358. The credit union told me I could not get a loan until the collection was paid. The credit union actually took my $358 towards the collection and paid it themselves.
Now its 2011. I applied for another car loan and the credit union called and said I had a unpaid collection of $358 for Progressive. I told them it should have been paid back in 2009 otherwise my loan in 2009 would not have been approved. The loan processor said she would look into it and speak with the lady who processed the loan back in 2009.
The woman who processed my original loan in 2009 called and was so nice. She apologized and said that the collection was paid back in 2009 and said my credit report was never updated and said it has been effecting my credit for the last 2 years. She strongly advised me not to move forward with my current loan app until this was resolved. She said she has old copies and dates of when the collection was paid and the check was cashed. She said it looks better on my credit for the collection to show as "paid". She also stated that the fact the collection was paid 2 years ago would make my credit even better. I asked her if it would be that significant of an increase on my score if I did wait to get a new loan until the item was disputed. She said it could possible increase my score 50-60 points.
She is going to mail me copies of the dates the payment was sent and received as well as a copy of the check sent. She said I will have to dispute it myself but she will help me.
I called the collection agency reporting the collection as unpaid. They stated the dates the payment was received and the date the account was listed as "paid". They said there is nothing they can further do to update my credit reports. they said I will have to dispute with the credit reporting agencies. Is there a way I can get the credit agencies to completely delete it off my account?
So my questions are:
- Will the collection showing "paid" really increase my score 50-60 points?
- How does an increase in points reflect on the interest rate on a loan
- When I dispute this, is there a way to ask them to delete the collection all together for it negatively effecting my credit for the last 2 years after it was paid?
- Any tips on wording the dispute?
- Should I put my car loan on hold or proceed until the dispute is resolved?
Thanks!!!
