Credit Score Of 647 I Didn't Pay A Bill

I have had a credit card for ten years

A couple years ago I had to go to an emergency room, I had no insurance.
They sent the bill to the wrong address so I did not recieve it . The hospital forgave the debt about a year after it was incurred. But a collection agency is trying to collect on the debt anyway .
This is a delinquent account . It has affected my score which is 647.

Since the hospital forgave the debt why should I have to pay the bill collectors?

I need to get my credit score up
Should I pay the debt ? Is my credit score
low becuase of the debt (It is very small)or because I have only one c/c ?

Thanks

Comments(14)

  • Mario1177926th September, 2004

    Do not pay the debt to the collection agency. Send them a debt validation letter or hire a professional credit repair agency to do the work for you. After they cannot validate the debt, they will have to remove it from your reports.

    Your score is a complex algorithm of many factors. Ideally, you should have 2 credit cards with 7% to 25% of utilization. The higher the limit the better on your cards. Just keep your balances below that 25% mark. If that is the only derogatory item on your report, your score should shoot up significantly after you get it removed. The last derogatory account to be removed always gives you the greatest boost.

    Also keep in mind, (I know I already said this, but it is important), if you pay the collection agency, IT WILL NOT HELP YOUR SCORE. It will go from a collection account to a paid collection account and that is a derogatory account either way. Let me know if you need any further help with your situation.[ Edited by Mario11779 on Date 10/05/2004 ]

  • Niceguy126th September, 2004

    Thanks I have some questions

    Do not pay the debt to the collection agency. Send them a debt validation letter or hire a professional credit repair agency to do the work for you.

    Just keep your balances below that 25% mark. If that is the only derogatory item on your report, your score should shoot up

    What is a debt validation letter?
    How much would a credit repair agency charge on a 263.00 debt ?

    What do you mean "keep my balances below the 25% mark "I like to pay in full every month

    How do I get another credit card if I have a bad score?


    Niceguy [ Edited by Niceguy1 on Date 09/26/2004 ]

  • Niceguy126th September, 2004

    Yes you have clarified

    What is your number or e -mail ?I 've seen people give out numbers on the forum

    But you did not answer the question
    How I can get an additonal cc?

    Niceguy

  • Niceguy126th September, 2004

    Thanks

    I'll call

  • Mario1177926th September, 2004

    Your welcome. I look forward to hearing from you.

  • OnTheWater28th September, 2004

    Hello,

    I'd invite you to pay the debt.

    Thanks,

    OnTheWater :-D

  • Niceguy128th September, 2004

    Pay the debt I hope it's that easy
    I would need to find out if
    that would raise my score

    Even if it didn't raise it it's still the right thing to do. but according to Mario that aint going to fix things.

  • honii28th September, 2004

    Mario is right. Paying that debt won't move your score up dramatically. Also, when you are applying for something, even a house, most lenders will overlook derogatory medical bills!

    ~Kesha

  • flacorps29th September, 2004

    You might look up "WhyChat's" HIPAA approach on Google.

    If you handle medical collections correctly, they come off. Even if HIPAA doesn't work, you might be able to negotiate a delete-for-pay arrangement (called "pay for delete" elsewhere) .. PFD.

  • autoharp30th September, 2004

    Mario's right, but I'll say it even louder...NEVER deal with collection agencies! If you have a debt with a company, repay the company and do not pay the collection agency.

  • flacorps30th September, 2004

    Quote:
    On 2004-09-28 22:55, honii wrote:
    ... Also, when you are applying for something, even a house, most lenders will overlook derogatory medical bills!
    ~Kesha
    But they won't spot you the FICO points, so you still may not qualify for a decent rate or a prime card.

  • Niceguy17th October, 2004

    Good news

    I contacted the hospital billing company not the collection agency and am paying the bill.

    They are going to delete the non payment mark from my credit report because I did not recieve any of their correspondence . So it's like starting clean . Thanks Mario and Autoharp for the advice about dealing with the people I actually owe not the collection agency

  • Mario117797th October, 2004

    Your welcome!

    wink

    Sincerely,

    Mario Costanz

  • fmmp7th October, 2004

    Quote:
    On 2004-10-07 00:39, Niceguy1 wrote:
    Good news

    I contacted the hospital billing company not the collection agency and am paying the bill.

    They are going to delete the non payment mark from my credit report because I did not recieve any of their correspondence . So it's like starting clean . Thanks Mario and Autoharp for the advice about dealing with the people I actually owe not the collection agency


    Since you are going to pay for delete I would get that in writing before I paid the bill. You wouldn't want them to "forget". wink

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