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Chapter 11. CREDIT REPORTS > No Good Deed Goes Unpunished

No Good Deed Goes Unpunished

Negative information on your credit report such as an unpaid account is automatically removed from your credit report after seven years. But what if you have an account that is six years old that shows up as having gone to collection on your credit report? Logically, it would seem that if you made a payment on that account, it would be helpful to your credit. Unfortunately logic does not always play a role in the world of credit reports and credit scoring. By making a payment on that overdue account in collection, you will have transformed the account from an old account that is about to disappear from your credit report in another year to a current collection account that will stay on your credit report for many more years. Perhaps the best action to take is to get your creditor to agree, in return for your payment, to report the account to the credit reporting agencies as being satisfactorily paid in return for your payment rather than being designated as a current collection account.


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