Before You Pay That Collection. . . Read This!

Did you know that your credit score will most likely drop when paying off a collection? That’s right. Let’s say you have a collection that was new in July of 2005. It will show a “DLA” (date of last activity) of “07/05” on your credit report. If you pay the collection today the “DLA” changes to “09/07” or (whatever the current month is). To the computer that calculates your score this recent activity is bad and consequently has a negative effect on your credit score. Seems unfair doesn’t it? There is a way to get around this and avoid the score drop. So, Stop the Drop! For tips on paying collections and other score improvement tips contact Pete today at (952) 292-0285 or visit www.theshraderteam.com.