my score is so low and i think its due to that but im not sure, also i was told if i pay them off they will go through the same cycle as if i didnt [ay them off so whats the benefit of paying something that will show as negative on my report anyway?!
2007-01-25 07:10:04 · 3 answers · asked by toolate 3 in Business & Finance ➔ Credit
Having suffered them myself, I can tell you from experience that they hurt BIG time. Collections is collections no matter what. And anything that shows up as collections on your credit report will hurt your score. All that stuff you were told was by the collection agency, and they could care LESS about your problems.
Once you pay it off, that scar will be there on your report for SEVEN years. Doesn't that suck? However, if you're willing to make a few calls, there's a chance you can get things worked out for yourself.
Try the following:
1) If you have the means to pay it all off, call the ORIGINAL creditor (the hospital in this case) and tell them so. Tell them that you can pay it off immediately if they take the item OUT of collections. If they agree, make sure you get that in writing. Basically this will take it off your report and all's well.
2) If you can't pay it off, still consider asking them to remove it from collections if you make regular promised payments.
Two key elements here: a) only deal with the ORIGINAL creditor, NOT the collection agency and b) you gotta fight for the chance to get things moving in your favor.
ALWAYS BE COURTEOUS when dealing with these folks on the phone. Just like you they'll be MUCH more willing to help you if you're nice. Be pleasant and accept whatever decisions are made with contentment.
When I was dealing with this, I successfully pulled two items out of collections by working patiently with the creditor. It's possible and it's a great thing if you can get it to go your way!
Good luck! Feel free to email me if you have any more specific questions.
2007-01-25 07:27:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Can be huge. It depends on how much credit history and depth you've got.
Think of it this way. The more credit you've got, the less a collection will impact your credit score. But if you've very little credit and a collection, the impact will be huge.
Either way, the impact is substantial. Do your best to get it removed either by contacting the company or the credit bureaus and pleading your case. I got a medical collection removed and my score went up 60 pts.
Learn more at http://www.thetruthaboutcreditcards.com
2007-01-25 07:25:18 · answer #2 · answered by Todd S 3 · 0⤊ 0⤋
it makes no difference what kind of collections it is, credit card vs. hospital, it is all the same...bad.
Paying them off will be better on your credit than not paying. It will still show that you went to collections or were late, or what ever the reason is, but it will show that you eventually made good on your debt. The other side is, you have a collections that you never made right.
2007-01-25 07:25:27 · answer #3 · answered by ricks 5 · 0⤊ 0⤋