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Doesn't paying off collections help ur score?

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Anonymous
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Re: Doesn't paying off collections help ur score?



phoenix_gurl wrote:
Hi there, I am new and have been reading the forums and I am completely at a loss as to where to begin. I am ashamed to say that my scores are 422 or so across the board and I do not know how to use the credit watch features accurately and how to make any of the really old debt go away. I was told to dispute everything on Experian and on Equifax and say it is over 7 years old for some and yet the items keep getting re-reported due to being sold to collections. I want to pay off what I need to increase my scores but I am a single mother of 11 years with one small income and 2 small children. I need real help and honestly if I do not get this credit cleared up by Feb of next year i will have to move my children again as the house I am in now (renting) will be sold. This will be the third time for us that this has happened. I am ashamed that I have not been able to bring my head out of the sand and address these credit issues before - but I was wondering how I could get someone to look at my 2 credit reports I currently have and tell me where to start and what to pay as I only have about 1500.00 to settle with and now I am not sure this will even help. I am so lost and so alone in this that your forum has given me a bit of hope and I need so much guidance. Do you think it is possible to get my score up to mortgage par in less than a year?? Or even close?? I was so naieve to think I could just settle these accounts and get them cleared and move on - it has been a battle of futility since I began in January and the months are spinning by with no progress! Any help would be great! Teresa

Hi Teresa and welcome to the forums.
 
Have you already ordered hard copies of your reports? If not, I would suggest starting there. That will be the first step to getting names, dates and addresses to work with.
 
You may start a new post if you have specific questions about each item on your reports. You should see more answer's to your question's that way. But don't give up hope, it's possible to get your score's to an acceptable level in a short period of time.  
Message 61 of 168
Anonymous
Not applicable

Re: Doesn't paying off collections help ur score?

Hi Teresa,

I was in bad situation as well. I still although, the reporting is not in the report as I have a judgment (which has been erased, I saw on some laws and articles that it cannot be re-inserted and I can keep disputing it).

In regards to collections, I have sent myself emails and I know it is in one of those where the law shows that a collection report can only be reported twice on the same account. One from original creditor and most likely the collection agency who bought it. The only third time it will be reported I think is when they change it from collection to charge off? Then if they file a judgment against you it will be the fourth time. It sucks as I start thinking about this.

I also found out that when they put it as a charge off, your score increase a little bit as it reads it as a new account. The bad news is, by that time, the amount you owe have balooned by 40%. When it goes to judgment, then it baloons even more.

All interest are being charged as if it is an open account on all cases, collection, charge off and judgment.

The good news there is in my case, the judgment now only calculates 10% annually, intead of the 22% my OC used to charge

A lot of people here as I read on, do spread sheets and such to get their game plan going. Write a lot of GWs and PFDs which I have not done, but will try to do on a lot of my accounts.
Message 62 of 168
Anonymous
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Re: Doesn't paying off collections help ur score?

What is a PDF?
Message 63 of 168
Anonymous
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Re: Doesn't paying off collections help ur score?

How did you get Direct TV to delet the collections?  I want to pay the collection but do I ask them that I will pay if they take it off my record.?? Please help, thanks!!!!!
Message 64 of 168
Anonymous
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Re: Doesn't paying off collections help ur score?

I have recently received a court order to appear "within 30 days after service of this Summons upon you.  If you fail to do so, judgment by default will be taken against you for the relief demanded in the Complaint."
 
If the original balance was "charged off" can the collection agency now sue me for the balance?  I was close to foreclosure on my house and business but I'm now getting back on my feet.
 
Can anyone help?  What can I do?
 
Any help greatly appreciated!!!!!!!!
Message 65 of 168
Anonymous
Not applicable

Re: Doesn't paying off collections help ur score?

Are you being abusve? or just being mean.  Deadbeat means they can pay but chose not to.  When people first try to get credit it is because they think they have the ability to pay it.  Some uncontrollable circumstances happens and we do try to control the situation without harming anyone.   I hope what happens to those you call deadbeat will not happen to you, as it will be called Karma and I can almost see how it will hurt you.
Message 66 of 168
Anonymous
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Re: Doesn't paying off collections help ur score?

Sorry I was trying to answer to an abusive new poster.  The post I sent was not meant for any of the posters here.  Thank you moderators
Message 67 of 168
Anonymous
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Re: Doesn't paying off collections help ur score?

JR hun that attitude or comment is not needed here. You need to think about what your CHATTING up before you get your knickers in a twist.My police officer husband was murdered, It sent my life into a tail spin, Others here have lost jobs of many years because of lay offs & cut backs & have LOST the one time comfortable lifestyle they knew. Others are just trying the best they can to correct mistakes from the past of a lower income and this might surprize you or not you seem to be a know it all , ALOT of people still dont know your credit CREDIT reports & SCORES matter now in this ERA and I see alot of persons trying to change them with very hard work 24/7... If you ever fall on your BEHIND remember this conversation .
Message 68 of 168
Anonymous
Not applicable

Re: Doesn't paying off collections help ur score?

You sound like me two years ago, the good news, I did get a mortgage.  keep paying everything on time, that is the number one factor to improve your score.  Next, you say you don't use your credit card a lot, use it to buy small items, pay that off at the end of each month, and never  use more that 60% of your available credit.  we were using our one card to buy big ticket items and paid them off a little every month to gain good credit, but it didn't work, so after calling FICO because our credit was flat, it turns out that using over 60% of your credit "makes you look desperate" as a consumer and they "assume" you are using your card to play catch up or maintain a lifestyle you can't afford.  As soon as we paid off the card infull the score went up, then we did it again next month and it went up again.  so small balances, paid off at the end of each month really helps.  It's a lot of work, but that is what the bank who will lend you money to buy a home is looking for, that you can manage money well.  Good Luck in your new home...you're on your way!
Message 69 of 168
tri3nity
Contributor

Re: Doesn't paying off collections help ur score?

How are sure that they will delete it after it is paid? Is there a standard letter that i  can send to make sure they keep their end of the bargain?

Starting Score: 1/2011 TU 539 EQ 481
Current Score: 2/2011 TU 542 EQ 489 EX 505
Goal Score: 620+


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Message 70 of 168
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