Credit Score
How fucked are you if you have a derogatory remark on your credit score from a collection but rest everything is perfect? TC: 300
Why did it go to collections?
It’s from my previous employer who paid me some extra money during final settlement and after a year a agency emailed me asking to pay which I ignored and suddenly I see a derogatory remark. I am going to hire a lawyer to contest it. But, don’t who how exactly it works
What made you think you didn’t owe the money? You deserved it
Depends on the amount, how old it was, and other circumstances. I had a bunch of parking tickets in another city I visited for a few days that I kept ignoring. They showed up as collections on my credit report. When I got a mortgage I wrote a letter saying they were parking tickets, I just kept forgetting to pay, and that I had now paid them off (I had). It wasn't a big deal.
Mine is 7k from previous employer who claim they paid me extra after a year of leaving the job.
Pay the original creditor, not the collections agency. Then call the collections agency and inform them that you paid the original creditor. It will come off. Do not pay the collections agency directly, it will not come off that way. They will try to talk you into paying them, do not.
Can I contest the amount because the amount shown is including the tax. Like I was paid 3.5 and they want me to pay back 7k including tax. This is over a year as well
What’s the collection for? If it is a valid debt, I’d generally recommend paying it. It will remain valid for seven years.
Go to credit karma and use their tool that lets you put in that hypothetical
Credit score is still more than 700, but how much does it affect while taking loan?
Not much. You’re probably already getting the best rate you’ll get.