Lets say you have bad credit a medical bill that has been on your credit report for 6 years 9 months and all a sudden you get a letter in the mail stating the company or merchant wants you to make payments and all will be forgiven. Did you know a collection company is trying to get you to make one single payment (all it takes is one single payment) because the 7 year drop of your credit report is ready to expire in 3 months. Once you make that payment they can start the 7 year bad credit all over again ( this means multiple collection companies can keep selling over and over like flipping a home to profit).
You paid Xohnstonnnn Collection $150 on a balance of $2,300 on a monthly plan. You make four payments to this collection company and on the fifth payment the operator of that collection company tells you that your bad credit was transfered to Jedsooow Collection Ltd (meanwhile Xohnstonnnn Collections made enough and now they make a small profit by selling your bad credit to Jedsooow collection company). You call Jedsooow Collection company and they tell you we have your bad credit now, you owe us $2,300 we want $95 month payments. This can go on as long as this bad credit gets sold and if your determined to clear up your bad credit. Don't make any action and after 7 years that bad credit is no longer there. The original bad credit was already wrote off the first day your original credit line failed in collect (thats what insurance is for).
A. DO NOT RESPOND TO ANY BAD CREDIT
B. DO NOT SEND ANY MONEY OR CHECK OR DEBIT CARD
C. ONCE BAD CREDIT IS ESTABLISHED IT'S PRETTY MUCH A DONE DEAL
D. ALL CREDIT (BAD CREDIT) DROPS OFF CREDIT REPORTS AFTER 7 YEARS (NOW CHAPTER 11, 12 OR BANKRUPCY STAYS ON YOUR CREDIT REPORT FOR 10 YEARS BEFORE ITS REMOVED)
Learning the ropes on bad credit will save you money. Most of the time that bad credit you paid off never gets reflected on your report. You have to hire a lawyer to correct your report. Sometimes that bad creditor will remove the ballance to 0 owed, but they take their sweet time doing it.
Remember no phone calls & no payments to bad credit on your report, your just waisting your time and efforts. I got this information from one of my bank managers, because she did the very thing on trying to pay off bad credit only to find out the credit collector sold that bad credit off and now theres a new collection company wanting the same amount she just paid in payment option form.
DURING PAYMENT OPTIONS A COLLECTION COMPANY CAN SELL THE BAD CREDIT OFF WHILE YOUR STILL PAYING, YOU WILL LOSE ALL THE MONEY YOU JUST PAID. DON'T MAKE THE MISTAKE AND PAY THE NEW COMPANY, IT'S A CONTINUOUS CIRCLE THEY PLAY TO STAY IN BUSINESS, IT'S LIKE ONE COLLECTION COMPANY SHAKING ANOTHER COLLECTION COMPANIES HAND THEN HANDING TO ANOTHER THEN ANOTHER (IT'S A HUGE SCAM BY COLLECTION COMPANIES). SO DO NOT PAY ANY BAD CREDIT!
There's no law against this action from collection companies, let's put it this way for you to easily understand, collection companies don't want you pay the bad credit off, they want to take some of your money then sell it to another collection company. President Obama needs to address this issue and ban such activity.
What's done it done, we all knwo that getting behind on bills during any given slow economy that late or dropped credit happens. Get back on your feet and just put it behind you.
TO GET CREDIT TODAY RIGHT NOW, YOU HAVE TO HAVE A CREDIT SCORE OF 701, IF YOU DON'T HAVE THAT DON'T LOWER YOUR CREDIT SCORE EVEN MORE WHEN THE CREDIT YOUR APPLYING FOR COSTS 1 CREDIT POINT.
You have 816 as a credit score and decide to apply for a line of credit, when that creditor checks your credit it costs you a point now after one application you now have 815 credit score, do this 20 times in one month your credit score is 795. You get the idea now, thats how credit scoring works.