Collection Agency on my report - and I want to buy a house.?
View your credit file based on any of the UK credit reference agencies, or all three at once
LifeLock is the only Identity Theft Prevention Solution backed by a one-million dollar guarantee!Click here to get a 10% discount.
I got unemployed 4 years ago, and had a $6K CC that went to collections. I want to buy a house. All of my bills after I got re-employed are current and in good standing. Altogether I owe about 10k, 9k being student loans that are in satisfactory accounts. Still have collections reaging the debt claiming I owe them this money.
I am not interested in settling because 1) original creditor sold the account and 2) wrote it off as a loss. Me on the other hand am stuck with 7 years bad credit, as consequences of a lay-off. Down to 2 and a half years before the time the FCRA claims I can remove this off my report, 1 1/2 yr from SOL. The collection agency never bothers me, theyjust send me a stern letter twice a year.
So my question is - I almost have the downpayment I need for a small condo, and paying off the collection agency re-ages the debt and does nothing for my score, if anything it is kept longer. So can I still buy a house?
Collection Agency on my report - and I want to buy a house.?Hate to be the bearer of bad news, butthe 7 years starts from whenyou pay them off. Being laid off from work does not absolve you of having to pay back the people who lent you money.
I would recommend negotiating a pay to delete letter from them. Pay them at least a portion of what you owe them in exchange for a letter deleting the collection from your report.
As an alternative, you could settle the account with them and then, a few weeks later, dispute the entire account with the credit bureaus. Since they will have been paid, they are not likely to respond to the dispute letter on time and it can be deleted that way as well.
More Related Questions and Answers ...
The loan information post by website user , we not guarantee correctness.