how to handle penn credit collection before mortgage application?

J

john evans

Member
i just checked my credit report while preparing for a mortgage application and noticed a $350 collection from penn crediton behalf of my local utility company. then icalled the utility provider and they confirmed that if i pay them directly they will update the account with penn credit as paid. now i have a question in my mind that will this automatically remove the collection from my credit report or will it just show as paid. has anyone had success with penn credit removing a paid collection?
 
Just paying the debt won’t automatically remove the collection from your credit report it will just update to "paid," which is better than unpaid but still not ideal for your mortgage application.

You might want to try a pay-for-delete request with Penn Credit. Basically, you ask if they’ll remove the collection entirely in exchange for full payment. Some collection agencies agree to this, but it’s not guaranteed.
 
You can write a goodwill request asking them to remove the collection as a courtesy, especially if you’ve been a long-time customer of the utility company
 
It will likely just show as paid not removed, unless you negotiate a pay-for-delete agreement with Penn Credit. Since the utility company confirmed they’ll update it you might want to follow up with Penn Credit after payment to see if they’ll remove it.
 
Itll likely just show as a paid collection which won’t help your score much. You can try negotiating a pay-for-delete agreement with Penn Credit before paying and if they agree in writing theyll remove it from your report completely
 
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