Carlos’s Credit Savvy Tip #4: Don’t pay off old collections

Carlos’s Credit Savvy

Tip #4: Don’t pay off old collections

      Why would you ever not want to pay outstanding collections? Because, due to an error in the credit scoring software, when you do and your credit score is recalculated your paid collection becomes the most recent item on your report. If your collection is more than four years old, having a recent paid collection will hurt you more than leaving it unpaid.

Regards,
Carlos
www.CarlosSamaniego.com

P.S. Today’s picture was with Jim McCann, CEO of 1-800-Flowers I had a chance to meet and speakCeo800floweres_1  with briefly in Chicago. It was amazing listening to his story how he built his company.

The picture below was from last week at Andrew (my 9 year old son) school play, Elizabeth him giving me a celebration pose!

Lizdrewatschoolplay_1

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