Credit Score in 28212>Question Details

Amy Gossett, Home Buyer in 28212

I have several items on my credit report that I am trying to pay and have removed( utility bills). I was advised to contact the collection agency

Asked by Amy Gossett, 28212 Fri May 21, 2010

and let them know I would pay infull if they would remove from my credit. Did that and all refused to removed but said they would update as account paid in full and zero balance. So wanted to know if I paid off completely and my credit report is update once update would this drop my credit score?

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Hi Amy,

Danny gave you a great answer below. As he suggested, doing a Lease Purchase might be a good alternative for you to consider. You can also fine out more about that at the Rent to Own website below.

Matthew Tringali
Owner of Group 15 Real EState
1 vote Thank Flag Link Fri May 21, 2010
Amy, If they are recent collections, then it would help your score to pay them off. If they are older than 24 months, it could lower your score to pay them off as that will show up as recent activity.

There are a lot of people in your position. If mortgage financing is not working out for you, there are some great rent to own options available. Best of luck to you. Danny Plueddemann.
1 vote Thank Flag Link Fri May 21, 2010
Amy, you may have gotten decent advice on paying those collections off, but they may have steered you wrong about how to get those things removed. If you tell them that you will pay them if they will give you a letter stating that the account was reported as a collection in error, then send it yourself to the credit bureaus, you can get those items removed. I have done it for clients of mine as a rapid rescore and have seen their score go up 50 points overnight.
0 votes Thank Flag Link Fri May 21, 2010
I think you need to at once start working with an agent and a lender that will help you. Otherwise your advise will be all over the board.
Web Reference:
0 votes Thank Flag Link Fri May 21, 2010
If you are attempting to pay off to obtain a mortgage loan, the lender will require you to pay off the collection items.

I would check with your lender (I can refer you to one if you currently are not working a lender). They may advise you to pay at closing, versus before. As the first answer states, paying off may give old history a more recent date.

Best of luck to you. Let me know if I can be of any assistance - 704.649.8163
0 votes Thank Flag Link Fri May 21, 2010
Companies that report your payment record do not have control as to how credit reporting companies (Experian, Transunion, Equifax) report your credit status. The credit reporting companies mentioned have a system they follow which is supposed to be consistent throughout. Once your account is reported as "Paid in Full" with 0 balance owed your credit score will begin to improve relatively to if you had not paid off the accounts.
0 votes Thank Flag Link Fri May 21, 2010
Your credit score should go up once you pay off all of your collections. I not sure who advised you to ask the credit agencies to remove them from your credit report as they never do this. I have heard that your credit score needs to be 620 now to purchase. Have your credit checked once you pay everything off and see what it is. If it isn't 620 yet, then ask your mortgage person to tell you what to do to get it there. If you need a good mortgage person, contact me and I will give you one of the best. I will also be happy to help you with your home purchase when you are ready.

April Crowder
Coldwell Banker United, REALTORS
0 votes Thank Flag Link Fri May 21, 2010
Hey Amy,

When you have a moment, give me a call. We have a relationship with a bank lender that works with a credit repair specialist that may be able to assist you. No strings attached, just trying to help. 704-491-8026.

Dwell in the possibilities,

Felix Virto
Dwell Charlotte
0 votes Thank Flag Link Fri May 21, 2010
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