Question:
I have a $2500 collecton acount that's schedule to hit Equifax bureau at the end of this month. i recently check my credit score and it's currently 729 with Equifax. I can't afford to pay for the collection since i'm no longer working a full-time job. the collection agency doesn't want to work with me. they keep threating me that they're going to sue me and damage my credit. what should i do? how can i advoid my score from being damaged? does this mean i will have bad credit, once collection account hit my credit? i do want to pay this item. I don't have the money as of now. is their anyone or anything out there that could prevent this from happening?
Answers:
call the collection agency and ask to speak to the supervisor of the person in charge of handling your account. most collection agencies hire people with little or no experience and they treat you as if the money is theirs. they are paid on commission so they want you to pay in full but if you talk to someone from the agency itself you may have better results. good luck.
Credit score is based on positive and negative. A 2.5K collection is a negative and is going to hurt your score a lot. Posting the collection will hurt the credit. They can sue for the amount, lien property and in some states attach wages.
Try talking to the company who originally owned the debit and tell them the collection agent refuses to arrange a term; or talk with a manager at the collection company
Offer a payment plan, even if a deferred plan.
It will impact your credit, especially if reported as still open and owed with what would be a 'judgment'.
While with your credit score, you should be able to find an alternative way to pay this. However, given your work situation, it'll be a challenge.
While the last thing you should do is to refinance debt into a credit card, if you can get a 0% balance rollover, or a balance transfer of any kind, this would at least satisfy this collection in the short term. It will also buy you time to get out there and get your earnings back. Be very careful with credit cards here.
Good luck.
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When it hits your credit agency it will hurt your credit. Unfortunately, there's nothing you can do to stop it. Since you have good credit (not perfect), it will go down, but it won't be as bad as if say you had some late payments already. You need to call the collection agency and speak with a supervisor if the normal rep. won't help. You should be able to set up a FEW payments with them. Make sure you pay it ASAP and keep paying your other bills on time. Eventually your credit will go back up. This collection will stay on your credit report for seven years. Which will impact it until it comes off. Just make sure you try to pay all creditors off. This will show favorably. Try to make a purchase every month and pay it off the next. And those places that say they will "repair" your credit for money, they are a rip off.
All of the previous posters are correct.
Even if you get them to agree to a payment plan, there is no way of keeping this off your credit report.
Once it hits it will lower your score a lot.
If they take you to court and get a judgment, it will be even worse since the judgment will also show on your credit in the public records section.
All of this negative information will remain on your report for 7-years.
Beg, borrow do whatever you must do to get the money to pay them in full before this happens. Just make sure you have in writing that they agree not to post the collection to your credit before you pay them a penny.
You may want to look into a personal loan now and pay off the collection before they report it to your credit report. It wil be much easier to get a loan to pay it off now rather then later. Call your bank and ask them.
i just gotta say your credit isnt perfect.
If your credit is that good, go to the local bank you deal with and ask for a 2.5k loan. Then pay the collection co. I hate to break it to you, but if it has made it to collections, you probably already have damaged your credit. I would recheck my score, when was the last time you looked?
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