Paying Collection Accounts
October 18, 2008
Did you know that paying-off overdue accounts, particularly collection accounts that have not reported to the credit bureaus for over 13 months can temporarily lower a credit score? There are three primary reasons to pay-off an aged collection account over 13 months old: 1) Because the mortgage lender requires it as a financing condition. 2) The collector is willing to settle the account with a “pay for delete” clause, meaning the account will be deleted from the credit report. 3) You know the debt is real and you run the risk of a default judgment being filed against you.
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