Handling Collections
Collections on your credit hurt your FICO score. However, don't pay them off without establishing the effect they are having on your credit report! Anything over two years old has less and less effect. Many lenders will overlook old collections as long as your recent record is good. Note: Once you've paid a collection, it is virtually impossible to remove from your report and could actually hurt your score in the short term! Removing Collections from your Credit Report 1. Contact each original creditor listing collections on your report. (They may refer you to their collection agency if they have 'sold' the debt.) If you can afford to settle the debt, negotiate how you will pay it off. Insist that you will ONLY pay the debt IF they agree to REMOVE the item from collections and show the Account "Paid as Agreed" on your credit rerport. You must do everything in writing. 2. Your letter from the creditor (assuming you hounded them into submission) should st