Yes, you heard that right. Let's say at some point you settled a debt with a collections agency, and they marked the account as "paid charge off" or "settled charge off" or something similar. Despite the fact that it's now paid, being marked as such will still hurt your credit score. A lot. It's still a "collections account" on your credit report. But there is hope. You have three different options you can try to get rid of the account completely:
1. Debt validation
This is a task you should perform with ALL collection accounts no matter what, ideally the first time they contact you about the debt. NOTE: This only works with collection agencies, not the original creditors. The law basically gives you the right to demand that the collection agency a) prove that it has the legal right to collect in your state, and b) prove that the debt you owe is valid. So send them a letter asking for this information. A lot of the time they won't bother to dig for the info, and the collection account must come off your report. The same thing can work for a collections account that you've already paid off. The agency already got their money from you, and there's a chance they won't bother to verify the info you request and thus, the account must come off your report!
2. Goodwill
While not as likely, you can write a goodwill letter to the agency. This is basically a form of begging. Try to explain your monetary situation, without letting the violin play TOO much in the background :). In some cases, a collections agency will delete the paid account if you simply ask them to. Not likely, but again, it's worth the 41 cents to try.
3. Let the account age off
If it's an old account, it will disappear around the seven year mark. Like it never existed. This may not be an option for you if you need to get your score up quickly, but it's worth it to see exactly when the account went on your report and if it's close to seven years or not. It may be worth it to just wait it out.
Writing these letters and (especially) keeping up with the tenacity required can be a daunting task. While anyone can do it themselves, it may be worthwhile to look into a credit repair attorney if you don't think you have the time or willingness to keep up with it yourself. |
