Can Lexington Law Remove Paid Collections? Creditor Intervention Sent!
Typically, when an account becomes past due for a while, the creditor could decide to turn that account over to the internal collection department or even to sell that debt to a collection agency.
Then, there are times when you have already paid off the collections, but still has a negative impact on your credit report.
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How Paying Off Your Old Debts Can Affect Your Credit Score
In a perfect world, once you have paid your debts, the information would be updated on the report, and it will improve your credit score. That is not always the case.
FICO might be the most popular credit scoring model used by lenders, but that isn’t the only one. VantageScore is also used by some.
Older versions of these two mainly focused on the delinquent account of the consumer than the amount owed. So, paying off debts would not soften the blow of the negative impact caused by the delinquency.
In the newer versions of VantageScore and FICO, settling or paying the delinquent debts, especially those that were sent to collection agencies, could result in a higher credit score!
Both, VantageScore 3.0 and FICO 9 exclude the amount of collection from the score calculations when they are paid off.
Even if the account has not gone to collections yet, having the knowledge on how to pay these collections off and even actually settling or paying them off has the potential to help your credit score in some way or another.
What would also help is to understand how to remove the collections from your credit report. Clearing a debt has an impact on your credit utilization ratio.
This is the amount of credit you are using against the total limit of credit. For knowledge’s sake, your aim for a utilization ratio should be 20% or less.
Can Lexington Law Remove Paid Collections?
As mentioned, just paying off your debt alone does not just increase your credit score. There are other factors that come into play too.
For most people, something like this is quite complicated to understand and do, which is where having Lexington law by your side will make perfect sense.
On your behalf, they will contact the collection agencies as well as the creditors themselves. Lexington law, through goodwill negotiations and also by leveraging your right under the FDCPA (Fair Debt Collection Practices Act).
They will get the creditors and the collection agencies to completely stop them from reporting all the damaging information.
Lexington law comes with a ton of experience to attack several aspects of an individual’s collection problems. Their service levels are not just limited to the credit bureau disputes. Its #1 amongst a few great credit repair companies
In fact, in 2017 alone, Lexington law was able to help its clients see the removal of about 10 million negative items from their credit reports, which also included their collection amounts.
Definitely, with their years and experience and thorough knowledge on the subject, they are capable of helping you in this situation.