Have you ever dealt with a collection company before? Would you rather bang your head against the wall?
Recently, our team was called upon to help a client fix an “ugly” situation on their credit report to improve their terms with a home loan refinance. The collection only totaled $250 but, it had a huge impact because everything else was paid perfectly. You may wonder why this particular collection had a larger impact on this particular client’s strong credit report vs. someone who notoriously has late payments on their report. That’s a great question…..however the answer is, “it’s just an ugly reality.” Believe it or not, if you pay your debt in full but negotiate the wrong type of letter from the creditor, your result in regards to credit improvement could still be costly. We coached our client on what to say and what documentation they would need with the exact verbiage required to improve their overall credit rating.
The result: we were able to improve our client’s credit score by 107 points and reduce their monthly mortgage payment by over $100 per month for a one-time $250 payment and a patient phone call.
The long term savings in this situation saved the client thousands! If you have an ugly credit situation, call us so we can help you! As always thank you for your continued support! Without your ongoing referrals we would not be where we are today!