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What is the best way to take care of this collection?

New Member

What is the best way to take care of this collection?

I have 1 collection on my report.

 

The Bureaus

HSBC

original amount owed= $1019

date of 1st delinquency- 2/2008

balanced owed- $1381

 

I called the number for The Bureaus and the representitve said the account had been sent to their sister company, TCS, and that I would need to contact them. I was told The Bureaus could not speak to me about the matter, even though it was them listing the collection.

 

Anyways, so I called TCS and they told me I could settle for $760, and just updating a zero balance.

 

Heres my questions:

-Whats the best way to handle this?

-Since the 1st delinquincy was 5 years ago, Im in CA, should I not do anything and let it fall off in 2 years? I would like to try to buy a house soon. (6 months)

-Should I offer $400 and ask that it be deleted?

-How much will this raise my score by taking care of this? Is it worth it?

 

Thanks for the help!

 

 


Starting Score: 560
Current Score: 632
Goal Score: 760


Take the myFICO Fitness Challenge
Message 1 of 3
2 REPLIES
Moderator Emeritus

Re: What is the best way to take care of this collection?


lucywalker wrote:

I have 1 collection on my report.

 

The Bureaus

HSBC

original amount owed= $1019

date of 1st delinquency- 2/2008

balanced owed- $1381

 

I called the number for The Bureaus and the representitve said the account had been sent to their sister company, TCS, and that I would need to contact them. I was told The Bureaus could not speak to me about the matter, even though it was them listing the collection.

 

Anyways, so I called TCS and they told me I could settle for $760, and just updating a zero balance.

 

Heres my questions:

-Whats the best way to handle this?

-Since the 1st delinquincy was 5 years ago, Im in CA, should I not do anything and let it fall off in 2 years? I would like to try to buy a house soon. (6 months)

If you are planning on purchasing a home, some lenders require you to pay COs before they will approve your mortgage.

-Should I offer $400 and ask that it be deleted?

I like this answer.

-How much will this raise my score by taking care of this? Is it worth it?

It depends on what else is on your CR, good and bad.

 

Thanks for the help!

 

 


 

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 3
Community Leader
Epic Contributor

Re: What is the best way to take care of this collection?

You can always offer less than the full amount, but that is asking for two concessions on their part...... CR deletion and settlement for less.

Your chances of acceptance might be better if you make a higher offer.

Message 3 of 3