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Seeking Advice

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Visitor

Seeking Advice

I have tried to Google any and all possible variations of the question(s) I'm seeking advice on. Unfortunately, my situation seems to be too unique and it is hard to find anything that fits my exact needs. So I am taking to this forum in hopes of finding someone who may be able to point me in the right direction.  Several years ago, I signed a lease for an apartment in college.  I never ended up moving in, I found someone to cover the lease, but I did not pay the subletting fee. Shortly after not moving into this apartment, they sent me to collections for a full year of rent (upwards of $7,000).  I let that sit on my credit for longer than I should have. However, about a month ago, I reached out to the apartment complex in hopes of getting some clarification as to why I was sent to collections for a full year's rent. They had been taken over by new management, they were able to do some digging and thankfully found this to be a mistake on the old owner's part. They adjusted the amount that I owed to collections to $500 (the subletting fee). $500 is a lot easier to pay off than $7,000, so I am willing to pay this amount IF it will help my credit score, which has suffered drastically from this negative mark.  My question to you all is: If I pay the $500 to collections, is there a possibility I can get this negative mark removed from my credit. Am I crazy for even thinking this is an option?  If I cannot get it removed, what are my options as far as trying to improve my credit? As I said before, this mark on my credit is several years old and I want to say last time I checked my credit report, it will fall off in 2021 anyway, so is it maybe a better option to just wait it out? My only worry with that is I am hoping to look for an apartment soon and I am really worried about my approval odds with a negative rental mark on my credit.  Anything you have to offer is appreciated. Thank you in advance.

Message 1 of 9
8 REPLIES 8
Valued Contributor

Re: Seeking Advice

Get back in touch with your contact and ask for a PFD (pay for delete). That’s when, in exchange for paying the subletting fee, they request removal of the tradeline from your reports.


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Message 2 of 9
New Visitor

Re: Seeking Advice

Thank you very much. Is this something that I should reach out to the apartment complex for or the collections agency?
Message 3 of 9
Frequent Contributor

Re: Seeking Advice

As far as improving your Fico score.You will need an open credit account such as a secured cc that reports to all three cb's.Use the cc to make monthly on time payments and Keep cc utilization 1-6%.If the collection is deleted from your cr and that is your only derogatory that would be the best news.Paying the collection will not effect your Fico score.If you settle the collection that will effect your credit score in a seriously negative way.GOOD LUCK...

Message 4 of 9
Regular Contributor

Re: Seeking Advice

Paying for deletion is the only method that will have a positive impact on your credit score. Paying it will just update the collection as paid on your credit report and have the same effect on your FICO score. Settling it will have a negative impact on your credit score. As for your question on who you should contact about the pay for deletion, I would try the original creditor first. In this case, the management company of the apartment. Tell them you would like to pay the amount, but would like them to delete the collection from your credit report. They don't have to do this. It is not uncommon for companies to refuse. There are actually several good topics on this forum about pay for deletions. Good luck!

Message 5 of 9
Community Leader
Super Contributor

Re: Seeking Advice

It's not the only method that has positive effect on the score 

 

Any open unpaid collection that's updating will keep scores suppressed. Having an open collection already has negative effect and even settlement is better than leaving status quo. 

While paying collection itself may not result in huge points gain, at least the updates stop and scores can start recovering somewhat. 

 

PFD is ideal, OP should definitely try, but if that's not an option, paying or settling are certainly more beneficial than leaving it as is. 

 

OP, if you think you will be moving before the scheduled removal date, you will need to take care of this. If you're not, then it's up to you if you want to wait. 

 

Btw, welcome to the forums! Smiley Happy

EX 753 EQ 769 TU 755
Message 6 of 9
Super Contributor

Re: Seeking Advice


@swright10 wrote:

I have tried to Google any and all possible variations of the question(s) I'm seeking advice on. Unfortunately, my situation seems to be too unique and it is hard to find anything that fits my exact needs. So I am taking to this forum in hopes of finding someone who may be able to point me in the right direction.  Several years ago, I signed a lease for an apartment in college.  I never ended up moving in, I found someone to cover the lease, but I did not pay the subletting fee. Shortly after not moving into this apartment, they sent me to collections for a full year of rent (upwards of $7,000).  I let that sit on my credit for longer than I should have. However, about a month ago, I reached out to the apartment complex in hopes of getting some clarification as to why I was sent to collections for a full year's rent. They had been taken over by new management, they were able to do some digging and thankfully found this to be a mistake on the old owner's part. They adjusted the amount that I owed to collections to $500 (the subletting fee). $500 is a lot easier to pay off than $7,000, so I am willing to pay this amount IF it will help my credit score, which has suffered drastically from this negative mark.  My question to you all is: If I pay the $500 to collections, is there a possibility I can get this negative mark removed from my credit. Am I crazy for even thinking this is an option?  If I cannot get it removed, what are my options as far as trying to improve my credit? As I said before, this mark on my credit is several years old and I want to say last time I checked my credit report, it will fall off in 2021 anyway, so is it maybe a better option to just wait it out? My only worry with that is I am hoping to look for an apartment soon and I am really worried about my approval odds with a negative rental mark on my credit.  Anything you have to offer is appreciated. Thank you in advance.


1. Yes you should pay it off.

2. You should get documentation that it was a mistake and that the correct amount is $500, which has been paid.

3. You should ask them to remove it from the report.

4.  If they don't remove it, then you should dispute it with the bureaus, showing them the documentation.


7/1/19: FICO8 EQ 749 TU 783 EX 746 Total revolving limits 713500 (592500 reporting)
Message 7 of 9
New Visitor

Re: Seeking Advice

This is the response I received after reaching out to the apartment complex about a pay for delete option:

Good morning S,
I had a chance to speak with my general manager and upon looking into the file and the activity it appears you were sent for the relet fee that was never paid, and being that is a required payment we would not be able to offer it to be removed.
I do know that with most debt agencies they will allow you to work out a payment plan with them so it does not financially take a hit at one lump sum.
Thank you

Does anyone have an advice on how to proceed?

Message 8 of 9
Moderator

Re: Seeking Advice


@swright10 wrote:
This is the response I received after reaching out to the apartment complex about a pay for delete option:

Good morning S,
I had a chance to speak with my general manager and upon looking into the file and the activity it appears you were sent for the relet fee that was never paid, and being that is a required payment we would not be able to offer it to be removed.
I do know that with most debt agencies they will allow you to work out a payment plan with them so it does not financially take a hit at one lump sum.
Thank you

Does anyone have an advice on how to proceed?

Reporting that you 7K and its only 500 is a violation of the FCRA. I would just submit a letter to them of this along with a fact that if you are to take them to court for the erroneous referral amount to collections and subsequent damage to your credit that you would win 1K in court and that your offer is for them to write off the 500 and have it removed from your CRs in its entirety or you will proceed to file a lawsuit which would then put 500 in your pocket. Its called an ITS or Intend to Sue letter. Be sure to keep copies of your CRs in paper format and all communications on this if you decide to proceed this way.

 

If its been updated to 500 then I would make a deal with the CRA to have it removed and bypass the OC all together. They might be willing to do so when you inform them that the amount referred to them is bogus and you are considering legal action provided in the FDCPA and FCRA.

 

 

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Message 9 of 9