Reply
New Visitor
tifelu
Posts: 1
Registered: ‎03-01-2013
0

Payment Plan = mistake?

I've decided to start trying to repair my credit this year. I had two agencies that had purchased old debts still sending me notifications with offers to settle or go on a payment plan. I made the mistake of not researching these options first and went ahead and started a payment plan (3 payments settling on 40% of the balance). My first payment charged to my account yesterday and today I have a hard inquriy on my credit report from a collections agency I've never heard of? Not sure why or how this is legal? Is there anything that I can do at this point to undo any damage I might have done? I've read on some forums that I should have called the agency that I settled with before paying anything to make sure they remove the debt from my report once I've paid. I read on a different forum that paying a settled amount is just as detrimental to your credit score. Help!?

Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Payment Plan = mistake?

It could just be a coincident that a different CA did a HP.  And yes they do have PP in collecting a debt.

 

Yes, if at all possible, get it in writing that they will delete. 

 

No, if you settle it is still a paid debt.  If it says settled for less it will not look as good as PIF.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}