If you think paying off your outstanding debt will help, this is not necessarily the case. Sometimes all it does is reset the clock and impacts your history even harder! Here at Credit Services of America we want to tell you about three things you should know about unpaid collections.

First, the newest versions of FICO and Vantage Score ignore paid collections. What we mean by this is that even if you settled an account on your own, through a debt settlement company or paid off the collection, the credit bureaus will then report it with a new remark such as “settled in full” or “paid in full.” However, it will still be reported as a paid collection still negatively impacting your credit score. It does not get deleted just because it is paid.

Second, if you wanted to pay off any delinquent account, we personally would recommend that you started with the most recent delinquent account as the most recent accounts have the greater impact to your credit score.

Lastly, non-medical (consumer debt) hurts your score more than medical bills…that does not mean that medical bills are not as important. Most mortgage lenders will overlook medical collections. Though you should keep in mind, that we would still take care of any medical bills that are in collection as they are still weighing down on your credit score.

We, here at Credit Services of America, know that fixing unpaid collections can be another major strategy in improving your credit score, however it is best that you proceed with caution here and seek our expert advice on paying down some of those accounts as it may actually be more harmful than helpful.

Because we are the only credit repair company in the region to offer all 4 services under one roof including; credit repair, debt settlement, student loan consolidation and credit tradelines, we can help you settle any debt that needs to be paid and save you 30 to 70%! Part of our negotiation is that once that account gets paid we also get it deleted from your credit report!

Give us a call at 844-FIX-URCR or http://bit.ly/csaelpappt to schedule your FREE consultation!

*Individual results may vary. Please call for details and to discuss your own individual situation.