topic What I Learned From a Paid Collection in Rebuilding Your Credit

What I Learned From a Paid Collection

Anonymous — Thu, 11 Mar 2021 20:56:59 GMT

April 1, 2021 marks the end of 7 years for my paid collection, technically, although all three CRAs removed the derogatory early (TU 5 months; Experian 4 months; Equifax 1 month.) Now that my FICOs are back to the 800's - where they were before the derogatory - I feel like an enormous weight has been lifted from my shoulders. I'm sure many of you know that feeling.

I'm writing this post as a way to say "thank you" to this amazing group from whom I have learned so much. Seven years ago I knew little about credit reports and credit scoring. Among other issues, I had a very 'thin' credit profile. Thin enough that a single paid collection from Verizon for the huge amount of $92 was able to knock more than 170 points off my FICO scores. To all of you who have taught me so much, thank you. In return, perhaps I can share a lesson of my own:

If you are able to do it, pay disputed balances on time in full. Fight the good fight later, but don't think that withholding payment is going to accomplish anything. You're not impressing anybody by threatening to withhold payment. Nobody cares. You're only a computer file that will get sent to another computer that will eventually wind up in the computer of a collection agency that doesn't know you or your story and could care less. And now you've got a big black mark on your credit reports for the next 7 years.

(To be completely honest: You won't be miserable for a full 7 years. Your scores will gradually move up, and after 4 or 5 years they will look respectable but not like they used to be.)

On the other hand, if you pay the disputed balance - if you are able - then you have that on your side when taking the fight back to the company that wronged you. And they just might refund the disputed amount or part of it. That's happened to me on other occasions. But one thing you'll know: As aggravating as it is to fight with companies that just want to wear you down until you give up, when you hang up the phone or close the chatbox, at least you've got your good credit score.

Re: What I Learned From a Paid Collection

RobotDR — Thu, 11 Mar 2021 23:25:09 GMT

Well said. Good advice. Congratulations on the end of long journey!

Re: What I Learned From a Paid Collection

babygirl1256 — Thu, 20 May 2021 20:19:04 GMT

@Anonymous Absolutely correct. I experienced the exact same thing with BoA -and- I cosigned for the $400 SL card to help someone else out . . . NEVER again as if some carelessly mess-up their credit; they will not care about yours! The issue for me was that when I was finally notified, it was already reported as a CO to all 3 CRAs. The CO was supposed to be on file until 4th Qtr 2022 but I successfully got EX and TU to purge the line item -and- I'm still trying to work on EQ but they are stubborn as heck . . . will try in June 2021 and December 2021. Thanks for posting!!!

Re: What I Learned From a Paid Collection

805orbust — Fri, 21 May 2021 15:02:40 GMT

Awesome summation and fantastic advice. When the day of the final derogatory falling off comes, that Is a feeling that is unexplainable. Congrats on hitting the milestone, and the 800's again!

@babygirl1256 I prefer to call EQ "incompetent" instead of "stubborn" 🤣