Small collection account

by Melinda

I thought I paid a department store debt in full. I was never advised and it went to collections. When I got my free credit report I found out about this $11 debt and paid it in full immediately. It has negatively affected my credit scores. What can I do?

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Oct 20, 2009
Small collection acount on your credit report
by: Gerri

Small collection accounts can have a significant impact on your credit scores, even if you pay them right away in full. The good news is that under FICO's newest scoring model - FICO 08 - collection accounts with an original balance of $100 or less are ignored. The bad news is FICO 08 is not used yet by all creditors. So there is a good chance that $11 collection account is hurting your credit.

There are several things you can try. First, you can try disputing it through the credit reporting agencies. If it is not confirmed, it will be removed. Keep a copy of your dispute(s) and the results in a file.

If that doesn't work, you can try disputing it with the collection agency. Their contact information must be listed on the credit reports and by law they must investigate and respond within 30 days or the item must be removed.

If that still doesn't work, then I would recommend you appeal to the department store and see if they would be willing to help you get the item removed.

Given the circumstances - you never received a statement (which is required by law if you have a balance) - they should be willing to help. But it may take some legwork to get to the right person. Be patient but very persistent!

Please let us know what happens, OK?

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