Expert: David McArthur - 3/16/2009

Question
sir,
(1)I have been told that if I had a outstanding account that was in arrears for say 60 to 90 days. Then I come along after a year or so and pay it off in full, that just because I satisfied the bill, the number of times I was late paying would still stay on my record for 7 years. Is that true? and if so how can I counter that problem of late payments from years back if I'm not doing it now and want to buy a car?

(2) If an collection agency has a past due account listed on transunion and I pay it off with them but another collection agency has me listed on another credit bureau how can I get clearance from both without paying twice? THANK YOU

Answer
Kim,

1. You are correct that the negative history of late payments remain on the account.  You should also note that paying a collection will not increase your credit score.  It will help you in the long run as part of a bigger picture though.  

The way to correctly move past this is in 2 steps.  First, goto www.financialscoringsolutions.com and sign up to get help removing the negative items from your credit reports.  Second, strategically replace the negative information with the right type of credit building accounts.  These include CD loans, Secured CC, Manufacturer or bank issued car loans.

Feel free to call me at the number below to explain in detail if you have questions.  It is very important to make the right choices while rebuilding credit.  It is easy, but not simple.

2. I'm not sure I understand the question here.  Are you saying that two agencies are trying to collect on the same account?

David McArthur
219-718-8566