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How to manage Verizon collection

mbnrd
Established Member

How to manage Verizon collection

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.

11 REPLIES 11
mbnrd
Established Member

Re: How to manage Verizon collection

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

Capture.PNG

Message 2 of 12
simplegirl
Established Contributor

Re: How to manage Verizon collection

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.






Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


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Message 3 of 12
mycreditscoreisfair
Regular Contributor

Re: How to manage Verizon collection

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.

Starting score (January 2020): 454
First goal (December 2020): 580
Current score: 613
Current goal: 670

Credit cards:
OpenSky: November 2020 ($200)
Discover: December 2020 ($7,300 - AU)
Capital One Platinum: January 2021 ($750)
Discover Secured: January 2021 ($400)

Ultimate goal: Mortgage by February 2022

Declined credit cards: First Premier Bank, Verve, Self Smiley Happy
Message 4 of 12
mbnrd
Established Member

Re: How to manage Verizon collection

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. 

Message 5 of 12
simplegirl
Established Contributor

Re: How to manage Verizon collection

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.






Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


Take the myFICO Fitness Challenge




Message 6 of 12
mbnrd
Established Member

Re: How to manage Verizon collection

I called and they offered a settlement of $1600. 

Do you recall if it droped your score?

Message 7 of 12
simplegirl
Established Contributor

Re: How to manage Verizon collection

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.






Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


Take the myFICO Fitness Challenge




Message 8 of 12
mbnrd
Established Member

Re: How to manage Verizon collection

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!

Message 9 of 12
simplegirl
Established Contributor

Re: How to manage Verizon collection

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






Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


Take the myFICO Fitness Challenge




Message 10 of 12
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