Help re/building credit - collection/no credit history

[Anonymous]

Hi Everyone,

I am helping my sis-in-law rebuild/build her credit and was hoping for some guidance.

Here is her situation. She graduated recently and is working. No debt.

But she has some overdue medical bills that are in collection. I guess she didnt know these were owed and its just been in collections since 2011 and open. The amount isnt that much.

For the collections, what is her option? Can she negotiate to get the amount down? pay monthly payments? and most importantly can she negotatie to get the colleciton removed from her account? Any help on this would be appreciated.

Also she has never had a credit card, ever. What are her options to get one? Will she have to start with a secured line? Are there any unsecured ones that she can get?

I checked her score on CK and its around 510.

Thanks for all the help in advance!

[titanofold]

She can try contacting the Original Creditor (OC) to see if they can/are willing to recall the collection from the Collection Agency (CA).

If the OC cannot or will not, then she should contact the CA via mail to negotiate a Pay For Delete (PFD).

She should not acknowledge any responsibility, but express willingness to settle the debt quickly. And, remember, you're asking for favors.

If your brother has any credit cards (CCs) that have been in good standing for its history, then he should add her as an Authorized User (AU). That should help bolster her scores so that she may be able to get an unsecured card, or at the very least a secured card with a bank she can grow with, like Capital One or Bank of America (these are just 2 off the top of my head, there's lots of options that may even be better).

Most importantly, she will be okay. By this time next year she could be rubbing elbows in the 700 club.

[Anonymous]

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@Anonymous wrote:

Hi Everyone,

I am helping my sis-in-law rebuild/build her credit and was hoping for some guidance.

Here is her situation. She graduated recently and is working. No debt.

But she has some overdue medical bills that are in collection. I guess she didnt know these were owed and its just been in collections since 2011 and open. The amount isnt that much.

For the collections, what is her option? Can she negotiate to get the amount down? pay monthly payments? and most importantly can she negotatie to get the colleciton removed from her account? Any help on this would be appreciated.

Also she has never had a credit card, ever. What are her options to get one? Will she have to start with a secured line? Are there any unsecured ones that she can get?

I checked her score on CK and its around 510.

Thanks for all the help in advance!

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Before doing anything google the HIPAA Letter Process follow it exactly as laid out. If you have problems finding the website or any question PM me.

[Anonymous]

Thank you both for the replies.

So in this case the OC would be the medical providers? And contacting the collection agencies via mail, can I call them? or is that not a wise idea?

How do we go about not accpeting any responsilbity? I mean the debt is hers?

sorry for these questions, just new to this.

Thanks!

[Anonymous]

One thing I would like to point out is that in this case 'absolutely nothing' may be a valid course of action.  A collection from 2011 should drop off within a year or so...you may just want to run out the clock!

[Anonymous]

Even without paying it?

[Anonymous]

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@Anonymous wrote:
Even without paying it?

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especially without paying it - if you pay it, it may show as a paid collection as of the date it was paid...meaning 7 more years till it drops off

[rmduhon]

Nothing resets the reporting period. It is based on the DoFD (Date of First Delinquency), which won't chandler if it is paid.

[Anonymous]

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@rmduhon wrote:
Nothing resets the reporting period. It is based on the DoFD (Date of First Delinquency), which won't chandler if it is paid.

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*nods*  I am admittedly murky about what does and does not cause the collection date to reset - however I do know that it happens, so if you don't HAVE to mess with it, I would not.

As for whether you have to - likely not, as the statute of limitations for taking legal action on the debt has likely passed - if so, then all there is to wait for is for it to drop

[rmduhon]

If it happens then it's an easy fix to dispute the DoFD. Some people think that having a CA report a collection with an opened date is reseting the DoFD, but it's not. It's just the date that the CA obtained collection authority (either by buying it or having it assigned to them). Nothing can legally reset the collection for reporting purposes. Reseting the SOL is a different story.