can negotiating with creditors eliminate negative marks on my credit?

Question

So my situation is as follows:

I was very financially irresponsible during my college years and made some poor decisions that I didn't really care to think about at the time. I currently have 5 accounts that went to collection between 2 and 5 years ago. The balance due on these accounts ranges from $58 to $399. None of these accounts were revolving credit or loans, but they were unpaid bills.

I have had a steady job for the past 3 years and am starting to seriously look at buying a house, but my credit is really haunting me. Rather than waiting 5+ years to eliminate these adverse marks, can anything be gained by trying to negotiate with these collection agencies? In particular, I'm wondering how receptive they might be to receiving payment for these accounts on the condition that the negative marks be removed from my credit. Is this realistic, or do I have to simply wait it out? I have the money to pay these off now, but would rather not if I have nothing to gain from it. Thanks!

Answer 1

Collection agencies are required under fcra to update your credit report to show the accurate and current status of your account. If it's paid in full, settled in full, 120 days past due, whatever, it will report such.

The best thing to do is to pay them all in full as quickly as you can financially afford. This will have them updated to the best possible status on your credit report.


ps: It's always better to be honest and pay your bills. If you don't benefit from being honest in this life, you will in the next.

Answer 2

The first thing I would do is to review my credit report from all three 3 CRAs for free here www.annualcreditreport.com. After you find out what is being reported you can begin your process of paying off your debt.If you have settlements you want to arrange be sure to get the agreement in writing before you pay.(be sure to have the creditor delete the tradeline as an agreement for the balance being paid off . For the absolute best deal negotiate deals with collection agencies on the last Friday or Saturday of the month(saves a ton of money,go for 60% of the balance). Also check your local laws about actually having to pay off the debt,sometimes the SOL have run out and creditors cant legally collect,just make sure to watch your credit report to make sure that it does not show.Hope that this helps