How to manage Verizon collection

[onourwayfellas]

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.

[onourwayfellas]

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

[simplegirl]

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.

[mycreditscoreisfair]

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.

[onourwayfellas]

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. 

[simplegirl]

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.

[onourwayfellas]

I called and they offered a settlement of $1600. 

Do you recall if it droped your score?

[simplegirl]

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.

[onourwayfellas]

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!

[simplegirl]

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