will it bring my credit score down if I ask them to report that I am paying on it, so it will show on my credit report that I am paying on it? That's what the collections guy told me I just want to know if it's true?
2006-08-15 08:42:13 · 7 answers · asked by unique 1 in Business & Finance ➔ Credit
I recently asked them in written that it will be considered as a setlement, not as bad debth, if thats the case with you than I don't think you have what to be worried about
2006-08-15 08:48:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It will depend on the company that sent the bill to collections. Here is one example from a bank: If you had an overdraft or other fee you owed the bank and you didn't pay it they may write it off and send you to collections in which case the bank and done with the debt as far as they are concerned. The collection company will often buy the debt at a reduced rate (i.e. if you owe $100 they buy it for $50) with the hope that they can collect the full amount from you and pocket the difference. In this case it doesn't matter what you do. As far as the bank is concerned you didn't pay them and that is what is reported on your credit history. If you pay the collections agency they don't care, your debt has already been written off to them.
2006-08-15 15:57:33 · answer #2 · answered by snwbrder0721 2 · 0⤊ 0⤋
Your credit score will go up with your timely payments. If the collection agency doesn't report, or reports inaccurately, you can supply payment documentation directly to the credit bureau. They can't leave inaccurate info in your credit file.
Also, know whom you are paying. If the collector represents your original creditor, then you are settling with the creditor. If the debt was charged off and sold to the collection agency, then you are establishing credit with them. The original creditor will still report the charge off. As time passes, however, it will have less of an impact on your credit score. Good luck.
2006-08-15 18:22:16 · answer #3 · answered by Answer_Man 1 · 0⤊ 0⤋
Collection agencies are notorious for only reporting negative information. It costs to report positive information, so they generally only report your payments if you get them to agree to do so in writing.
Also, if there is one thing that collection agents have in common, it is that the frequently misstate the truth or just flat out lie in order to coerce you into sending a payment in. If there is any one reason why you should send a payment in, it is always because the collection agent receives a commission off of that payment.
Evaluate whether or not your payments will help your credit and prevent a judgment. If they do not report your payments and if your balance is low enough that a judgment is unlikely, then you may wish to consider letting the balance lapse until it reaches the statute of limitations. If you are going to pay on them, it is best to pay one collections account in full, and then move on to another. We normally recommend paying debts if you can reasonably afford to do so.
2006-08-15 16:16:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They always say this but then report whatever they want. Sometimes they will report that you are paying other times they have already report it as a write-off or uncollected debt. Getting them to change it is damn near impossible. Remeber the company you actually owe the money to is the only one that can report anything. The collection agency hired by that company to harass you cannot. Nor can they guarantee what the company will report in the end.
2006-08-15 15:50:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, having collection account show up at all on your credit report will negatively effect your overall credit and scoring.
2006-08-16 17:00:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes, anything that is active can and should be noted on your credit report. This will bring the score up not down, you want it higher not lower.
2006-08-15 15:48:59 · answer #7 · answered by DispatchGirl 4 · 0⤊ 1⤋