So we started on the road toward rebuilding our credit 1 year ago this month. We started with abysmal scores (497, 506, 512) due in large part to severely late student loan payments (180 days) last June and 2 collection accounts. Since then, we enlisted the help of a credit repair business (waste of time and money) and basically just have been riding the slow climb to the 600's. Well 1 year later, the sun has finally begun to shine. Our scores are finally to the point of being able to apply for a mortgage. That being said, that's just what we've done. Since we're building, the lender has agreed to work with us as we bring our mid-score up 8 points from a 612 to a 620. Our utilization was at 45% when he pulled credit and we've since brought it down to 20% and I plan to bring it down to below 10% within the next week.
Lo and behold, with the crappiest luck, a collection agency (ProCollect) for an apartment complex that we lived in 2 years ago has decided to send us a dunning letter for $1100. The stress and anxiety we are feeling is indescribable. The collection account is NOT showing up on his credit report (*knock on wood) just yet but I'm on pins and needles thinking that it still very well could. I was up all night reading these boards and various others looking for an answer.
I NEED ADVICE!! Do we DV this thing? Or do I just offer to pay it with a "pay for not reporting" stipulation (if they even accept)? I've had crappy luck with PFDs, Goodwills, etc. but I really need this to work out and I beg you all to steer me in the right direction.
(I also want to mention that the home we currently have a contract on is a new construction and not scheduled for completion 'til the beginning of October which is why the mortgage company is agreeing to work with us until he re-runs credit in less than 30 days in hopes that the lower utilization brings our mid to over 620. We've come so far to go backwards again. So upsetting!)
