I currently owe a medical collection( Franklin collection service) 4,000 I set up a payment arrangement that we both agreed on and they sent me a form to sign agreeing on 100 a month until payed in full. I am trying to boost my credit score. shouldn't they change the status from pass due to paying as agreed on my credit report since I am now paying them monthly as agreed. Would that boost my score a little or none at all.
2007-03-27 13:34:51 · 5 answers · asked by michelle 2 in Business & Finance ➔ Credit
No, paying as agreed is reserved for current, open accounts. Technically, you are still past due. Collection accounts will never say that... sometimes the agencies will report to the bureaus that payment arrangements have been made, though.
Once you are finished paying, they will update your status and it will say "paid" or "settled for less than full amount", whichever the case may be.
As far as your score is concerned, paying off a collection or having the status changed will not raise it. The only two things that increase your score is 1)paying on time and 2)reducing the amount of your debt.
I hope that helps!
2007-03-28 03:23:02 · answer #1 · answered by YSIC 7 · 0⤊ 0⤋
Once your account goes into collections, usually time or paying the debt off completely is the only thing that will improve your credit score. There is a chance that the collection company just hasn;t updated/transmitted the current information to the credit reporting agencies so that it still shows up as past due, not being paid on your report. I would call them to ask about it (be super nice!) and find out when and if they update the info on your debt. Your credit score will go up the more you pay things on time and also in line with your credit to debt ration...meaning that even if you paid everything on time, yet had a ton of credit cards at zero balances and made very little money per year, you would still be considered a risk to most creditors because of the money you have accessible on credit accounts to spend or overspend.
2007-03-27 20:41:37 · answer #2 · answered by chick33 3 · 1⤊ 0⤋
Wow, interesting question. The workings of the credit bureau are like looking at tarot cards. Their methods are not published. I would suggest consistency. Make every payment early. Dont miss a one. Print out your credit score regularly. Also ask the creditor how often they report to the bureau. Good luck to you.
2007-03-27 20:41:46 · answer #3 · answered by Boatman 3 · 0⤊ 0⤋
Your FICO (credit score) is probably more hurting from your debt load .
You still owe most of the $4K , so the debt / income ratio won't change for awhile.
2007-03-27 20:40:43 · answer #4 · answered by kate 7 · 0⤊ 0⤋
Until full payment has been made otherwise it's still considered as money owed.
2007-03-27 20:39:28 · answer #5 · answered by SGElite 7 · 0⤊ 0⤋