I have a collection on my credit report. I want to settle in full or for less. does it show better if i pay in full?
2006-10-01 13:50:05 · 4 answers · asked by facility333 1 in Business & Finance ➔ Credit
It depends. Your best bet is to make sure that you have conformation from the collector that the negative credit on you credit report is taken off. Some companies can screw you over by reporting things to hurt your credit even if you have paid in full or settled.
2006-10-01 13:52:48 · answer #1 · answered by Woody 3 · 0⤊ 0⤋
Yes a "paid collection" will show as a derogatory item on your credit report. You can settle with the creditor for a lesser amount and require him to send you a letter stating that the debt will be remove from the 3 credit agencies. If they refuse to do that for you, do not pay! A good contact to have is the lexingtonlaw.com, they are a law firm that specializes in credit repair, they've worked miracles for me.
2006-10-01 20:58:07 · answer #2 · answered by Olivier P 3 · 0⤊ 0⤋
It depends on who is interested in your credit report. Some companies might interpret it an indication that if they want to collect on a debt they would need to place it for collection, thereby losing whatever commission they pay to the collection agency.
Other companies sell their overdue accounts receivables to collection agencies for cents on the dollar.
So it would depend on whoever ordered the report.
2006-10-01 20:58:05 · answer #3 · answered by taurus 4 · 0⤊ 0⤋
It's does, but a "once a collect, always a collection." You see a creditor will look at your credit report and think that you already went into bad debt before. It is always good to pay your debts off anyways
2006-10-01 20:52:45 · answer #4 · answered by whackiejackies 3 · 0⤊ 0⤋