topic Re: How to manage Verizon collection in Rebuilding Your Credit

How to manage Verizon collection

onourwayfellas — Tue, 23 Feb 2021 02:58:15 GMT

I have a Verizon collection for $2023. They sent me a 1099 for 2020 for $1100 but the balance reported didn't change. The account was closed in 2018. I am willing to pay or settle it as long as it will not drop my credit score. Any advice would be appreciated.

Re: How to manage Verizon collection

onourwayfellas — Tue, 23 Feb 2021 16:01:00 GMT

Here is a screen grab of how it reads on my report.

Re: How to manage Verizon collection

simplegirl — Tue, 23 Feb 2021 17:57:43 GMT

I'm not sure how it would work if you got a 1099 but I'll let others respond on that. If it is not reporting monthly it will drop your score but of course you can recover those points.

Re: How to manage Verizon collection

mycreditscoreisfair — Tue, 23 Feb 2021 18:34:07 GMT

I had a Verizon account go to collections and it looked identical to yours. I didn't even know Verizon was on my credit report and it never showed up under 'collections'. I eventually received a letter from them and paid it in full through their website. They updated it to "paid, was a collection account..."

I'm also not sure about the 1099 situation. But, if I were you, I would contact Verizon and see what the situation is and how to resolve it. A paid account is better than unpaid, regardless of if your score goes up or down in the immediate future, at least that's my opinion.

Re: How to manage Verizon collection

onourwayfellas — Tue, 23 Feb 2021 21:47:57 GMT

I agree that paid is better, but I am hoping to apply for a mortgage some time this year and I dont want to do anything that will drop my score in the process.

Re: How to manage Verizon collection

simplegirl — Tue, 23 Feb 2021 21:49:53 GMT

Have you spoken to a mortgage company in particular? Because they can better advise on what your next steps would be with the Verizon collection.

Re: How to manage Verizon collection

onourwayfellas — Tue, 23 Feb 2021 21:50:39 GMT

I called and they offered a settlement of $1600.

Do you recall if it droped your score?

Re: How to manage Verizon collection

simplegirl — Tue, 23 Feb 2021 21:51:25 GMT

Also it says the last update was January of this year which gives me the impression they are updating monthly which means it would not hurt your score if you paid it but it would allow your score to recover and grow once it stops updating monthly.

Re: How to manage Verizon collection

onourwayfellas — Tue, 23 Feb 2021 21:52:13 GMT

I guess I could. I had not yet because I didnt want a hard pull on my credit because I know i am not ready to move forward. But i dont see why they wouldnt be able to jsut answer in general. thanks!

Re: How to manage Verizon collection

simplegirl — Tue, 23 Feb 2021 21:54:55 GMT

Any monthly updating on negative accounts that are paid don't usually drop your score after payment.

Re: How to manage Verizon collection

mycreditscoreisfair — Tue, 23 Feb 2021 22:22:12 GMT

@onourwayfellas wrote:
I agree that paid is better, but I am hoping to apply for a mortgage some time this year and I dont want to do anything that will drop my score in the process.

Many traditional mortgage lenders won't underwrite a mortgage if you have outstanding debts that aren't accounted for. You're more than likely going to have to pay it at some point if you hope to secure a mortgage.

My score went up a few points when mine was paid. But obviously not all results will be the same given different credit profiles.

Re: How to manage Verizon collection

IOBA — Wed, 24 Feb 2021 18:26:01 GMT

If you have received a 1099 for part of the Verizon debt, then the Verizon debt should be updated to reflect the balance less the amount of the 1099.

Re: How to manage Verizon collection

onourwayfellas — Thu, 04 Mar 2021 19:45:53 GMT

Ho soon after paying this off should I expect to see any score change? I understand that it will be on report for 7 years and will deminish over time. Just curious still.

Re: How to manage Verizon collection

IOBA — Wed, 10 Mar 2021 22:38:50 GMT

Your credit score can change anytime during the month there is an update.

Typically, the more time that passes between negative information and the current date, the less negative impact it has on your score.

"They" say that a negative stops "really" affecting your score after 2 years.