Credit score?
by Author on Thursday, August 26th, 2010 | 2 Comments
I have about 00 left on a credit card that was put into collections early last year. Im wondering should i pay off the rest of the balance? I know that by doing this, it would drop my score, but better to do this than wait 7 years for the collections item to be erased from my report. Im thinking of just disputing the item once i finish paying it off- but wondering how to go about disputing the item- could i try to dispute the "Collections" item or could i only dispute late payments?
Serious answers only. Thanks
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Hey, thanks for writing.
It looks to me as if you got some information mixed up.
You get a better credit score when you pay off your debts, not a worse credit score.
You can dispute anything you want on your credit report, but accurate information will stay on there for seven years. Some bad folks in the credit repair industry — and I know, they’re not all bad — will try to shake you down for a lot of money and tell you to dispute everything and it will magically vanish from your credit report.
Bull. What happens is that they dispute everything, which triggers a 30 day clock, requiring creditors to prove you owe the money. On day 31, the credit repair company pulls your credit report and guess what — the items disappeared! It looks like you have great credit!
Unfortunately, what happens is that the creditors take their time, and on day 32, or 33 or 34, or maybe a bit longer, they all re-assert that you owe them. Your credit score goes back in the toilet, and you’re worse off than before because you no longer have the money you paid the credit repair company.
If you have the money and owe it, you have both a moral and legal responsibility to pay it. If you don’t owe it, dispute away!
by paying it ,it will raise your score- see if they will delete the collection when you pay it off