Credit Score in Portland>Question Details

Judy, Other/Just Looking in Portland, OR

Is it true that if you pay on a collection debt it will remain on your credit report for another 7 years?

Asked by Judy, Portland, OR Sat Nov 14, 2009

Im trying to clear my negative credit rating by paying off a few of my collections. Some are several years old and others just a couple. But I read that that once paid it remains on your credit report and that there is really no need to pay off the debts below $100. Any truth to this?

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Trevor Curran’s answer
I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Sun Apr 29, 2012
Hi Judy and I agree with all opinions that encourage paying off the debt in its entirety. My understanding is that no matter what, it will remain on your credit report for 7 years. I would contact a reputable mortgage broker who can help you reconstruct your credit by helping you prioritize. I have a great referral: Rodd Miller at Pacific Residential Mortgage 503-352-7110 or . Good luck!
Janeese Jackson, Principal Broker
Real Estate Resource
0 votes Thank Flag Link Sun Nov 15, 2009
Actually, most will remain visible on your credit report for 10 years and sometimes longer. You were given incorrect information; regardless of the amount, it is still best to pay it off; the cleaner the report the better!

0 votes Thank Flag Link Sat Nov 14, 2009
YOU should pay off everything as quickly as you possibly can- then take the paid receipts or email copies of them to the three credit reporting agencies with the reasons WHY you had the problem in the first place. I have had clients that have done exactly that and while the information may stay there for 7 yrs...lenders will see that in good faith, you did pay them ALL off and I do mean ALL and have an explaination as to why this happened to you. The lenders will look at that in addition to your scores to see if you are a good credit risk. I am proud of you for taking responsibility to get that cleaned up. Good luck in your endeavors and I wish you well - and GREAT CREDIT!!
0 votes Thank Flag Link Sat Nov 14, 2009
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