When dealing with a collection agency that is handling your debts, it is worth it to look into negotiating your credit rating. This credit negotiation can help you in the long run, and also help you to maintain relatively good credit, even when dealing with debt collection.
More on Credit Negotiation
One of the first things to negotiate with a collection agency is the removal of the listing from the collection agency from your credit record. Even a “Paid as Agreed” listing in your credit is a bad mark and can lower your credit rating. This simple step should be relatively easy for the collection agency and is no problem for them, but it can be a big help for you as credit negotiation goes.
If you’re not planning to dispute the listing through Method of Verification, contact the original creditor and have them change the listing to reflect that you paid it to the collection agency. Making sure that it is clear in your financial history that any debts have been settled is key to credit negotiation and making sure that your credit rating is the best that is can be after a debt settlement.
If you have to deal with a bad listing as part of your history, then you’ll need to negotiate what the mark to your history will look like. “Paid,” “settled,” “paid collection,” etc. – there are a variety of possible listings that can be put on your account and knowing the best one, relatively, is important.
If the creditor won’t delete the listing entirely, try for at least something like “Paid” or “Settled” on your credit listing, as these both show that you’ve paid your debts, or at least settled them, and they look better than something like “paid collection” or “paid late,” which can be just as damaging as the original debt to your credit rating.