liz09 wrote:
Hello all!
I have a good credit score (770), but a negative item on my credit report for a medical bill. The date on the bill is misstated (its for $150 from 2000, but the collection company listed 2004). I've contacted the original creditor. They are going to send me a letter with the original date of 2000, and I plan to dispute at least the dates. I have a few questions though:
1) How bad is one negative item if you have nothing else wrong with your credit?
2) Should I contact the collection agency and pay it even if I can get it removed? I know negative items can show up when you apply for a big loan.
3) I know it is not easy to get loans right now. If I applied for a mortgage with that score and negative item (plus DH's 760, both stable jobs), are we likely to be rejected?
Thanks much!
If this is your only negative item, it could be causing a lot of damage. Read up on score buckets. You are in a score bucket with others who have negative items(collections). However, removing it will likely put you in a different bucket and could change your score either way, depending on what bucket you go into and how you compare to those in that bucket.
If this has been re-aged, then you need to read the re-aging thread below and follow those steps. See link below, has worked for me before.
If the OC will accept payment, I would pay them. If they won't, you could pay the CA to cease any further collection efforts.
As for being approved for a mortgage, you say your "score" is 770....which score is that and where did you get that? You have 3 scores, only direct access to 2.
As for this showing up, once removed it only shows up under certain circumstances and I've never ran into anyone who've had this happen. The creditor/insurance company/employer pulling the report, I think, has to request a special report in order to have these items appears once they are past CRTP. Read the FCRA for more information.
