Wondering if you should pay a collection on your credit report? 

Here are a few things you should know:

If you have ever received phone call or letter from a debt collector, it can be stressful.  While paying or settling collections and old bills will improve your ability to qualify for loans, there are no guarantees your credit scores will improve as a result. 

Here is why, the FCRA allows collections to be reported for up to 7 years, and there are no requirements that a debt collector or Credit reporting agency remove a collection simply because it has been paid.  However as a consumer you do have rights.

What are your rights?

Right to a written notice explaining your debt

Right to know the debt collector or debt collection agency

Right not to be harassed

Right to privacy of your personal information

Right to dispute incorrect debt

In Conclusion. If the debt is with the original creditor, then it would be best to pay off the debt in full. Reach out to them and try to work out a Pay for Delete negotiation.  If it is with a collection agency, then it would be best to challenge the debt for removal putting the burden of proof on the agencies. 

Sincerely,