Don't Just Pay It
Get that ugly collection removed, it not only looks bad, but will be a drag on your credit score for some time to come.
I see it all the time, people trying to do the right thing and rebuild their credit, but doing it the wrong way.
One of the easiest, but top mistakes I see people make when rebuilding their credit is to pay off or settle a collection account and not insisting that the company stop reporting it to the credit bureaus.
It's simple to do, just state that you want to settle the collection, but will only settle if the company will stop reporting the collection to the credit bureaus.
Make sure to get an actual commitment and not some round about we'll see what we can do type of response. Preferably get it in writing.
The reason this is so important to rebuilding bad credit is because you don't want any sign to future lenders that an account had to go to collections before you were willing to pay.
Not to mention, it will drag on your credit score for some time to come.
Repairing bad credit can save you thousands in the long run with lower finance rates on vehicles, mortgages, credit cards, etc...
It's also a little embarrassing to get turned down for a loan in public.
This tactic does not work 100% of the time with these companies, but if you don't ask I'll guarantee they won't offer.
I'd say your chance of success would be about 70% or better. Remember this collection company is all about getting their money back, with a profit, for collecting and not about reporting to the credit bureaus.
Having collections removed from your credit report can give a quick and oftentimes big boost to your credit score. If you don't have them removed, that ugly collection will stick to your credit file for the next 7 years...
Review your credit file, dispute any inaccuracies, payoff any legitimate collections, be sure to
ask Insist that they be removed and watch your credit score climb fast...Get your Credit Report with enrollment at CreditReport.com!
I personally review my credit file regularly on a quarterly basis and would recommend that to you do as well, this will help you to maintain your new, excellent credit file.
Having a collection removed is just one of many tactics you can use to start rebuilding your credit, but by far one of the easiest and most important.
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