There has been conflicting issues about what happens when a consumer pays off a collection and how after they pay it off their FICO score goes down. Common sense would say if you pay a bad debt off, that this is a good thing.
With my clients I've seen on several occasions where someone pays an old collection account and then (all other things being relatively equal) their score goes down because the (DLA) date of last activity gets updated.
So what really happens when you pay off a … (1 comments)
score: WHY CREDIT INQUIRIES CAN REALLY HARM YOU?
- 07/17/08 03:55 PM
WHY CREDIT INQUIRIES CAN REALLY HARM YOU? Have you ever had a client that is purchasing a home start doing credit inquiries during the transaction and next thing you their score is 25 to 50 points lower? Do you want to know why credit inquiries affect your score so much? Read on. Every day I’m confronted by one of my client about how they just applied for a credit card, car, mortgage or just about any credit inquiry that you can think of. The thing I tell them is that on our first credit coaching discussion I let them know … (4 comments)
score: Avoid credit repair scams
- 07/14/08 05:01 PM
Avoid credit repair scams Cleaning up your credit history could get you into more of a financial crunch if you hire the wrong company.
Here's how to not get conned. These days’ banks are tightening up their guidelines and are clutching on tighter to the almighty dollar, making it harder to qualify for loans. This is a warning that some companies are using the credit crisis to take advantage of consumers who want to clean up their credit. Here are some top tips on avoiding these scams.
1: Get the skinny According to the Better Business Bureau complaints … (0 comments)
To: (the original creditor and or the collection agency: name and address)
RE: (account name and number)
Dear______,
This Letter will serve as your legal notice under federal law that regulates the activities of collection agencies and their representatives.
You are hereby notified under provisions of public Law 95-109, Section 805-C, THE FAIR DEBT COLLECTION PRACTICES ACT to hereby CEASE AND DESIST in any and all attempts to collect the above debt.
Secured credit cards: We recommend getting a few of these types of cards when a client has either not enough good and open credit, or no current accounts in good standing;
The benefits: *You can build a new clean credit history and reestablish good credit which will help raise credit scores *You use it just like a regular credit card, but the risk is low because the money you borrow on the card is your own deposited money and you choose your own limit
Take note: *you … (1 comments)
score: How To Raise Your FICO Score 100 Points in 45 Days
- 09/06/07 12:28 PM
How to Raise Your Credit Score 100 Points in 45 Days Brought to you by www.StrategicCreditCoach.com the credit repair experts. GET RID OF YOUR COLLECTION ACCOUNTS. Did you know that paying a collection account can actually reduce your score? Here’s why: credit scoring software reviews credit reports for each account’s date of last activity to determine the impact it will have on the overall credit score. When payment is made on a collection account, collection agencies update credit bureaus to reflect the account status as “Paid Collection”. When this happens, the date of last activity becomes more recent. Since the guideline … (8 comments)
Mission: We educate and coach people looking to improve their credit score and overall financial health so they are able to learn financial disciplines and achieve a more secure future.
Vision: To raise the standard of living for all people and inspire them to live their passions and dreams and have piece of mind.
Changes in Credit Score when Collection DLA gets updated...
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