I have about $2,500 in collections due to a lay-off 3 years ago. I want to purchase a home soon and want to increase my scores quickly. I will be able to pay off every collection item within 5 or 6 months and read that some agencys will remove items if I agree to pay them in full. If I get all of my collection items removed from my report will that increase my scores immediately? I do not understand credit at all and I was trying to get info from Consumer Credit Counseling, but they want a payment plan and I want to handle this on my own.
2007-05-31 05:46:52 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Once they are paid your credit score will go up - not all at once it is a gradual procedure. Good idea not to use Consumer Credit Counseling - when you use them it is like saying I still can not handle my own money and bills. Also they usually charge you something and they can not do anything for you that you can not do yourself. I am in the Housing Counseling field and have had training and the banks say using a debt management plan is like a step just above bankruptcy - meaning they do not look favorably at it - its a little better than bankruptcy but not much.
2007-05-31 06:06:01 · answer #1 · answered by mona 1 · 0⤊ 0⤋
If you are successful in getting the collection companies to agree that they will remove the collection activity from your report? Your score will go up as soon as this information is removed.
It can be done, it is not illegal, I know because I have done it, but it is very rare. If they agree, get it in writing before you pay them a dime and then pay by check, cashiers, check or money order so you will have a paper trail to prove that the debt was paid.
Good luck.
2007-05-31 07:06:48 · answer #2 · answered by ? 7 · 1⤊ 0⤋
SCH is correct. You won't have these collections removed. That is a violation of credit reporting practice. You WILL have them shown as paid in full, which will help to increase your FICO. However, the fact that you were late on these payments will remain in your credit report until they 'fall off' after the seven year deadline.
2007-05-31 06:27:47 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
From my experience collection accounts can affect your credit up to 70 points. May be more or less depending on your situation.
2007-05-31 05:55:25 · answer #4 · answered by Chuck J 2 · 0⤊ 0⤋
Once those items are off your score will immediatley be affected
2007-05-31 05:54:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It will show as paid, not be actually removed. If they are telling you they can remove it as if it were never on your report they are doing something illegal.
2007-05-31 05:54:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Your score could go up..
2007-05-31 06:06:12 · answer #7 · answered by shorty21 5 · 0⤊ 0⤋