Mistake?

[Tia_Tulip]

Hi everyone,

Newbie here.  I've been browsing the forums for a few days and I have learned quite a bit, whish i'd come by a lot sooner. I apololgize in advance for the long post.  Now to my issue:

I want to buy a house i the next 6 months or so. I've been checking my credit scores with Experian, its currently 679.  I'd like to get it up to about 700 or more, if possible.  I ran a 3 beaurau credit report via EX last month and found a collection on my account from 6/2009, on both Experian and Transunion.  I called the Credit Agency regarding this account because I did not know what it was for. Turns its it's for library books, and the collection amount if for $166. When I asked how do I pay it, they lady on the phone told me that I would have to pay the Library directly and they would notify Agency of the payment, but it would take 4-6kweeks (6-8?).  

At the time I was living less at home and more at school and my sisters....hence the missed collection letters. Anyway.

@ the Library:  So here I am just wanting to settle this debt and get it behind me, so i dig up the books I owe and go to the library.   After I returned the books, my $166 balance went down to $64, which were the fines I owe. I pay the $64 in full.  My library account has a $0 balance and I paid with my debit card.  I asked the library lady if they would let Collection Agency know and if they would take the report off and she said yes. ( I can hear you guys yelling 'get it in writing', .   Just FYI: at this time I did not know about Pay for Delete or GoodWill letters.

This was about 10days ago.  so to my question, if you are still with me:

1) Did i make a  mistake in paying the debt, even if it was to the Original Creditor (the library)?

2) Will it negatively affect my FICO?

3)When should I pull my Experian Report to check if it's been reported (it's free since i'm a member)?

4) If it the account shows as closed, can I send a letter to the Library or Collection Agency to remove it from my report?

Off topic questions:

1) I have 7 intallment loans: 6 with Sallie Mae to which I make 1/mo. payment, and one with US Dept. of Ed., all totaling about $40K.  Should I consolidate???  I would have to go with Direct Loans as Sallie no longer does conslidations.  

2) I have 1 hard inquiry from 10/12, I wanted to open another CC to raise my limit, it's currently below $2K.  Will another Hard Inquriy be wortht it, since I will have more hard Inquries coming when I apply for my home?  My fear is not finding a home and having to re-do it all again--not trying to pull anymore than necessary.

FYI: I have no other collections, I have missed payments from 2.5y ago on CCs,  and i've brought my utilization down to less than $100 this month--and plan to keep it that way.

[gdale6]

1) Did i make a  mistake in paying the debt, even if it was to the Original Creditor (the library)? Maybe time will tell

2) Will it negatively affect my FICO? If it reports, yes

3)When should I pull my Experian Report to check if it's been reported (it's free since i'm a member)? I pull reports every day

4) If it the account shows as closed, can I send a letter to the Library or Collection Agency to remove it from my report? yes

GW those lates, should have no apps for credit 6 months in advance.

[Shogun]

What was the name of the collection agency that was reporting?  Was it "Unique"?  If so, I believe they delete after a year if it's paid.  More than likely the lady at the library has no idea on how they report.  It's paid, so if the UW asks anything about it, you could tell them it's paid.

General rule of thumb when applying for a mortgage is no new credit for 6 months before you buy.  I know this isn't written in stone, it's just what's recommended.

As far as consolidation goes, you would have to see what works best for you and your particular consideration.  

[Tia_Tulip]

The Collection Agency's name is "Unique Collections".  

I did some forum research to see if anyone had dealt with Unique before, and I've read some posts where they state that they now delete the report right away and that they report on the 16th and 24th; instead of one year after.  I had experian refresh my report today and it was still there.  I think I'll give it a few days and refresh it again, since it also showed a $252 revolving credit on my Cap 1 card and I know for a fact my balance on that card is $0.  

Thanks for responding.

[Tia_Tulip]

Thank you gdale6   I think I will have to have a little patience and see what my report reflects.

[Shogun]

---

@Tia_Tulip wrote:

The Collection Agency's name is "Unique Collections".  

I did some forum research to see if anyone had dealt with Unique before, and I've read some posts where they state that they now delete the report right away and that they report on the 16th and 24th; instead of one year after.  I had experian refresh my report today and it was still there.  I think I'll give it a few days and refresh it again, since it also showed a $252 revolving credit on my Cap 1 card and I know for a fact my balance on that card is $0.  

Thanks for responding.

---

I figured that's who it was.  They specialize in library collections.  Hopefully they delete immediately, that would be great.  I just know what their old policy was.

[G_kwr]

Hi, Obtain the snail mail address for the CA. Then send a certified goodwill letter to try to have them delete it from your CRA.