It is very important that you
understand how the paying of collections impacts your credit report.
For this discussion let's imagine you have a $65 medical collection that has a date of last activity greater than two years.
For this discussion let's imagine you have a $65 medical collection that has a date of last activity greater than two years.
I know what you are thinking let me
just pay them the $65 and get this taken care of.
Here is the scenario when you pay this collection:
The collection agency collects your $65 and then updates your credit report to a zero balance indicating that you no longer owe this debt. Now for the bad news you just lowered your score. When the collection agency updated your credit report to a zero balance it also updated the date of last activity.
In summarization, you just paid money to lower your credit score
70% to 80% of all credit reports
have issues…. contact me to review your
personal ( or someone you know or care about ) report.
