Some background: I’ve had no credit cards, no loans or anything else on my credit for over 10 years and my credit report was basically like it was when I turned 18 (I know, that was a HUGE mistake!)… then I got divorced 2 years ago and had 2 things go into collections (depression on losing my kids hit me hard). I’m FINALLY in a place where I’m happy and working on my credit now.
So, now I have 2 items in collections on my credit report. One was “paid” last year when I returned equipment (a DVR) to the cable company that I found in the closet and forgot I even had. They removed the big amount ($738 for a DVR) from the return and it showed up as paid on my report… but there was still $200 owed (the last bill) and then that’s when the one collection ding became two. The other $200 showed up from a collection agency last year. So now I have 1 in active collections and 1 in paid-off collections. I can’t even see the paid one on Credit Karma, but I can see it in the Nerd Wallet app.
I have done some research and show that the collection agency will remove it off of my credit report all together if I agree to pay the $200 in full and I have a sample letter I’m sending them to ask for it to be removed. I won’t talk to them over the phone, has to be in writing through the mail.
My question is… that one is a year old and the paid one is 3 years old from what the report says. Should I just pay the 1-year-old and leave it on my report to reflect credit age, or should I have it removed and show no age at all?
I applied for the Apple Card on my phone and expected to get denied, but they approved me for $250 credit limit and I’m taking it very, very serious and paying it off in full every month and not going over 30% utilization at the max. That should raise my credit score up a little bit, right?
Let me know what to do. I am ready to get back on with my life, and with a good credit score this time!