HUGE HIT on CREDIT SCORE 800 ---> 480, What do I do???

[Anonymous]

(25M) Graduated school a year ago. So my credit score tanked about 8 months ago, it was at an 800(All 3 agencies) and went down to a 480 when I didn't pay my school loans accidentally(was under the impression I had a year to pay with th wording from my contract, turned out to be 6 months), also got screwed with an emergency room bill from last year, that didn't get payed because i never received a bill, and it went to collections. I thought my insurance had taken care of it at the time turned out not that case. Anyways, I am now current on my school loans thankfully and my score was going up until about June when it was at a 640, and I also disputed the collections account and it fell off. But another agency came back this month pinged my report again, and now my Score dropped to 600 . I have to be honest, this is making me so super depressed. I always pay my bills, NEVER late for with Credit card, I budget, but because if a silly mistake I have to suffer never being able to take out a reasonable loan. The collection is for about 1000 dollars. I am capable of paying it, however should I? Im sure this has to be the 3rd or 4th collection agency by now that the debt has been sold to, so is there a statute of limitations for them pinging my report? Should I just pay them, even at this point, I am so tired of this, and don't want debt corrupting the rest of my 20's, I want to start a business, but that is really tough if I can even get a loan for money. My dad tells me never to talk to collection agencies as it only resets the "timer" and it's throwing my money out the window. I feel I have no control over my credit. I also am in the process of getting a security clearance for job, how will this affect getting that? Any help here people?

TLDR: Credit Score tanked a few Months ago, struggling to get back up as I have unpaid medical collections, not sure if it will affect security clearance application.

[Anonymous]

@Anonymous 

On that collection you disputed, and it got removed, so you're saying that another collection agency took the same debt over that was removed, and added back is that correct? 

If this is accurate, myself, if that happened to me, and if the 1st collection you disputed, you have solid proof it shouldn't be there, I would definitely not pay it. If you pay this one, it will show up as a paid charge off. I recently had one 9/19 $82 Comcast original creditor, however I had moved across country and somehow I made a stupid oversight, and I paid it bc I did owe it. As a result it shows up now collections/ paid.  But in your situation, you definitely should dispute it if Indeed its the same one you had removed. I hope it turns out in your favor!

Yes your Father is right, anytime you contact the collections it does reset the clock (7yr) however, if this is recent then yes I would take action. If it was like 5 yrs or older, it would drop by 7yr. 9mo 

[Anonymous]

So original collection dropped off. I can truly netier confirm or deny whether or not it was becuase of the disupute. All I know is the CA is gone and a new CA is on. So I can only imagine it was sold to them... 

[Anonymous]

---

@Anonymous wrote:

@Anonymous 

On that collection you disputed, and it got removed, so you're saying that another collection agency took the same debt over that was removed, and added back is that correct? 

If this is accurate, myself, if that happened to me, and if the 1st collection you disputed, you have solid proof it shouldn't be there, I would definitely not pay it. If you pay this one, it will show up as a paid charge off. I recently had one 9/19 $82 Comcast original creditor, however I had moved across country and somehow I made a stupid oversight, and I paid it bc I did owe it. As a result it shows up now collections/ paid.  But in your situation, you definitely should dispute it if Indeed its the same one you had removed. I hope it turns out in your favor!

Yes your Father is right, anytime you contact the collections it does reset the clock (7yr) however, if this is recent then yes I would take action. If it was like 5 yrs or older, it would drop by 7yr. 9mo 

---

This is incorrect.

Nothing resets the clock for the Date of First Delinquency! It may reset the SOL to sue you, but it seems you are within that time frame, anyway. Your father is incorrect about the reporting. SOL to sue depends on what state you are in and only is reset if you:

Acknowledge the debt is yours

Promise to pay

Make a partial payment

Make a payment arrangement

As long as you call with intention to pay it and actually pay as agreed, they will not seek to sue you.

The CAs and OC (original creditor) have 7 years that they can report. Just because they took it off when you disputed it, that does not mean that they can not place it back on or sell it to another CA and then in turn they can report it. They can do this the entire 7 years while unpaid.

Who is the CA with? Perhaps they do PFD (pay for delete) where when you pay them, they remove the CA off your credit reports. While paying a CA itself does not increase your scores immediately (if you cannot do PFD), it will stop updating monthly and can start to age off quietly, no longer constantly supressing your scores with each update (as long as you refrain from disputing it and it coming back verified, which would cause a new update and a fresh score supression).

I would avoid disputing 100% if the account is yours and it is accurate. It will only cause your score to be further supressed every time it comes back verified.

[Jnbmom]

---

@Anonymous wrote:

@Anonymous 

On that collection you disputed, and it got removed, so you're saying that another collection agency took the same debt over that was removed, and added back is that correct? 

If this is accurate, myself, if that happened to me, and if the 1st collection you disputed, you have solid proof it shouldn't be there, I would definitely not pay it. If you pay this one, it will show up as a paid charge off. I recently had one 9/19 $82 Comcast original creditor, however I had moved across country and somehow I made a stupid oversight, and I paid it bc I did owe it. As a result it shows up now collections/ paid.  But in your situation, you definitely should dispute it if Indeed its the same one you had removed. I hope it turns out in your favor!

Yes your Father is right, anytime you contact the collections it does reset the clock (7yr) however, if this is recent then yes I would take action. If it was like 5 yrs or older, it would drop by 7yr. 9mo 

---

Agreed this is not correct info at all with the OPs issues.

Follow @Anonymous  advice 

[Anonymous]

@Anonymous 

First of all, before you rudely, highlighted with your "Incorrect" I was asking him if the original collections that he apparently disputed and got removed was his or not. My suggestion was going on the assumption that the original debt was not. If it is not his debt he doesn't have to pay it. 

Of course, if the original debt was his and it went to collections, and somehow, he disputed it and was removed, and Then . . it was sold to another collections, and back on his reports, naturally he definitely should own up to it and pay it off to avoid further actions like you are saying!

[Anonymous]

@Anonymous The collection is with Pheonix Financial Services. I have been disputing on my equifax, and they quickly verify it... Equifax is even worse at the moment... What do I do here because time is of the essence here... Thanks for the reply.

[Anonymous]

I ask you all, if the debt isn't his is what I was asking, why would he be obligated to pay??

I'm new here and learning and going by my experience, because I had a collections, and the debt wasn't even mine!?!? Yes, it was removed. 

I see this forum now is not about learning and advising its about attacking.

[Jnbmom]

@Anonymous 

They were not rude just stating your advice was incorrect. When a poster gives incorrect advice even though they thought it was correct, it will be stated that's incorrect.

All we try to give the best advice we know based on experiences, I have also been incorrect at times I don't mind and appreciate when someone posts the correct information. Nobody attacked you , they just corrected you, it happens .

[Anonymous]

---

@Anonymous wrote:

@Anonymous The collection is with Pheonix Financial Services. I have been disputing on my equifax, and they quickly verify it... Equifax is even worse at the moment... What do I do here because time is of the essence here... Thanks for the reply.

---

The more you dispute it, the more likely they will label you as a frivolous disputer and auto side with the CA. Are you uploading documentation or proof that this is not your account or otherwise incorrect? That will be the only way to be taken seriously disputing the account.

If it is valid, you will need to just deal with it and stop disputing. Have you tried searching the forum to see is Phoenix Financial does PFD? A quick search I just did looks like they do offer this and will even settle for less and still delete the CA. I would be glad it is with a CA that does PFD and hope it doesn't get sold to someone who does not offer this! You have to be patient though, as nothing is "quick" in credit rebuilding.

After you paythe CA  there will be a couple updates, so you need to not get discouraged:

First the will update the balance

Then they will delete, so you will have to be patient and refrain from disputing it.

It takes roughly 30-60 days on average. Sometimes quicker, sometimes slower.

As far as the SLs, I would absolutely avoid disputing those, especially if they are fed loans of any kind. They usually start reporting at 90d late amd then whem you dispute they will add on the 30d and 60d lates. Unfortunately only time will heal those lates once they drop off. 90d+ lates will supress your scores for nearly the entire 7 years and usually there is little you can do to get them removed while you are still repaying them. Sometimes you can GW the lates off once repaid, but there is no guaruntee that they will remove them.

Are the fed loans? Or private?

Good luck!