I paid that friggin bill, why is it still on my credit!

Why is that thing still on my credit after I paid it?!?! grrrrrrrrrrrrr! Hello friends of the blog, ever wonder why this happens? If you have an account that goes into default or turns into a collection, and it's reporting that way on your credit it's going to stay there for 7 years, even if you pay it. Keep reading though, I have a few fun facts for you about this subject that you may want to know and it may help you. If you have a collection account on your report, usually a medical, direct tv or t-mobile it will be there for 7 years, paid or not. If it goes un-paid for a couple years, then you pay it the time starts over from date of last activity. That means your 7 years starts over from that date it's paid. However, it used to be that when you paid that collection not only would your 7 years start over but it would drop your score by 20-30 points. This is not the case anymore, FICO has changed that so that consumers wouldn't get penalized for doing the right thing. That's the good news from that, a lot of you probably didn't even know that score drop would happen.

When you get that call for that $100 collection or whatever it is, now is your time to negotiate. Odds are a collector will tell you they'll take it off your credit if you pay, you pay and assume it's taken care of. NOT SO MY FRIENDS! They're not obligated to do anything like that and will say almost anything to get you to pay. Again, your chance to negotiate! You want to get it in writing that if this account is paid they will tell the bureaus to delete the negative item from your report. You want to get that before you pay, you're not asking to have it deleted before you pay, but after. Be tough with these people if they're being tough back, treat it like a business transaction. Negative items have already been reported, if not from them then the original creditor, the damage has been done. Lastly, the key is to get that letter from them, then getting documentation that it's paid. Why? (besides the obvious) You need that documentation to get it deleted from the bureaus because even though they put it in writing they still aren't going to do it. Secondly, if it gets picked up by another collection agency you want that proof that it's already been paid. Comments and questions are always welcome! I'm always around...