To pay off a collection older then 6 months will damage credit. If it is on your report where the creditor is not listed you can contact the repositories (Trans Union, Equifax, Experian) and request to have it removed entirly. The creditor has to prove the debt is valid or it needs to be removed. Take the copy of your report, circle the errors, write a letter with your idenity information and the errors mail it to all three repositories they have 10 to respond and 30 days to correct By Law.The best way to stregthen your credit is to pay off credit cards to 10-50% of limit. Do not be late on payments always over pay on credit cards, never pay minimum amount.Limit how many people inquire on your credit too many people checking you credit will also bring it down. Have a bank or a mortgage company check your credit because the "hit" or penalty point for the inquiry is a lot less then on line (idenity theft risk) or a credit card company (won't review your credit report). You need a trained specialist with years or loan background to look at your credit and tell you want to remove, pay off or even ignore for the time being.
 |