The Lawyers.com Law Forums will be shutting down on June 30, 2017. We encourage you to resolve any outstanding discussions prior to that time. If you have any questions about this change, please email info@martindale.com.

Collections removed from credit report

Previous | Next
 rated by 0 users
Latest post Wed, Jan 18 2017 12:01 PM by Kivi. 8 replies.
  • Fri, Jan 13 2017 12:28 PM

    Collections removed from credit report

    There was an outstanding medical bill incured in 2013 that has been in collections for over a year. I've been reluctant to settle due to the negative effect it could have on my credit report. That seems weird to me but thIs is my understanding when you pay off bills that are in collections.

    Now that my credit score is over 700 and my finincials more stable I was going to ask my realtor what they recommend. I've been slowly paying off all of my past due bills [this was one of the last] while keeping everything else current. To my surprise when I checked my credit report today on Credit Karma * I was susrprised to see my score increased by 30 points and when I looked further discovered the bill in collections removed.

    Would this be something that would be revealed when they pull all bureaus from My FICO, or is it simply gone. And why was it removed? TIA

     

     

    * As reported from TransUnion and Equifax.

     

    "Just because you are one man and they are many doesn't mean they are right."

  • Fri, Jan 13 2017 3:29 PM In reply to

    Re: Collections removed from credit report

    isleofview:
    I've been reluctant to settle due to the negative effect it could have on my credit report. That seems weird to me but thIs is my understanding when you pay off bills that are in collections.

    If someone is telling you that paying a debt that is already reported on your credit as being delinquent will damage your credit, I think you are probably getting bad information or are misunderstanding something.

     

    isleofview:
    Would this be something that would be revealed when they pull all bureaus from My FICO, or is it simply gone. And why was it removed?

    I would hope it goes without saying that no one here has any information about your personal circumstances other than what you have told us.  One would need to look at your current credit reports and old credit reports to give you any sort of informed opinion about this.  That said, I'm sure some other regulars here will offer you all sorts of wild speculation about what might have happened.  :-)

  • Fri, Jan 13 2017 4:52 PM In reply to

    Re: Collections removed from credit report

    I'm more interested in the 1st part of my question.. "Would this be something that would be revealed when they pull all bureaus from My FICO, or is it simply gone."  

    To rephase my question, when a previous collection suddenly is removed from a credit report is it really gone or will it be it discovered when applying for a [mortgage] pre-approval?

    "Just because you are one man and they are many doesn't mean they are right."

  • Fri, Jan 13 2017 7:22 PM In reply to

    Re: Collections removed from credit report

    isleofview:
    Would this be something that would be revealed when they pull all bureaus from My FICO, or is it simply gone.

    Credit Karma and other free sites are good for the casual maintenance of your credit file but the accuracy can be off a bit.  To be certain you can order a hard copy of your credit report and review that.  You are legally entitled to one free copy per year.  If it doesn't appear on the hard copy then yes, it is gone.

    isleofview:
    And why was it removed?

    Most likely the reason is related to the fact it is medical debt.  It is not a HIPAA violation to report a medical debt to the bureaus.  HOWEVER, the collection agency must have a current business relationship with the provider to do so.  Once the collection agency no longer has a business relationship with the provider then they are required to remove the trade line under HIPAA.

     

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Sat, Jan 14 2017 2:21 AM In reply to

    Re: Collections removed from credit report

    ^^ Thank you.

    "Just because you are one man and they are many doesn't mean they are right."

  • Tue, Jan 17 2017 12:57 PM In reply to

    Re: Collections removed from credit report

    isleofview:
    I'm more interested in the 1st part of my question.. "Would this be something that would be revealed when they pull all bureaus from My FICO, or is it simply gone."

    I think what you're asking is whether the creditor would be required to report the debt as satisfied, the answer is yes.

     

    isleofview:
    To rephase my question, when a previous collection suddenly is removed from a credit report is it really gone or will it be it discovered when applying for a [mortgage] pre-approval?

    Paying off a debt will not cause it to disappear from your credit reports.  The debt will (should) still appear as having been delinquent, but it will (should) also show that it has been satisfied.

  • Tue, Jan 17 2017 1:41 PM In reply to

    Re: Collections removed from credit report

    Thanks.

    Next question, to what degree will the "satisfied" paid status of this bill in collection have on my FICO score or affect my mortgage loan application. My credit score is 770. Thx.

    "Just because you are one man and they are many doesn't mean they are right."

  • Wed, Jan 18 2017 8:47 AM In reply to

    Re: Collections removed from credit report

    Not a clue, and that question doesn't raise any legal issue.  Discuss with a realtor.

  • Wed, Jan 18 2017 12:01 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on Sat, Jan 1 2005
    • CA
    • Posts 6,363

    Re: Collections removed from credit report

    In all honesty, even a 730 FICO score is probably good enough to get a home loan at a reasonable interest rate. The best rates, of course, tend to go to people with higher scores. If your current score is 770, you might want to strike while "the iron is hot", expecially if those collections have "dropped off" your credit reports. 

    Most collections stay on credit reports sstay for seven years and that is from the date of "first delinquency", not necessarily the date that the deliquency first appeared on your credit reports. That could be the reason those accounts in collection disappeared. They do seem to be pretty old.

     

     

Page 1 of 1 (9 items) | RSS

My Community

Community Membership Search Community