Need a Higher Credit Score After Paying Collection Account with Midland Funding
Trying to buy a house and need 4 points added to my credit to get the loan. all they need is a letter from midland that i did pay off the debt
does it really take 45 days to get a letter staing your debt is paid in full and being reported to credit bureau?
It can take all of 5 minutes to get a letter showing that your debt has been paid or satisfied. The 45 days you are experiencing is likely the estimate for how long it can sometimes take to get the credit reporting agencies to pick up on the fact that the debt is paid. It does often take 30 days or longer to get credit reports updated. When it comes to mortgages and home loans, your credit profile is often determined by your middle score. This means that of the three major credit bureaus, Equifax, Experian, and TransUnion, the high and low credit scores are tossed, and your middle score is used. Waiting for all three credit reports to be updated with the paid collection account can take several weeks.
Freshly reported paid collections on your credit report can actually bring your credit score down.
Was settling or paying off a Midland Funding or Midland Credit Management negative item on your credit report suggested to you as a way to qualify for or mortgage, or as a method to bring your score up? If so, by whom?
Getting collection accounts resolved in order to show you are a better risk to loan money to in order to buy a home is becoming more standard in the risk adverse lending environment we have been in since 2008. But if you were expecting your credit score to go up immediately after paying or settling with Midland, you may be in for a shock. Midland is a debt buyer. This would generally mean the account they have has gone unpaid for sometime. The credit reporting, if associated with Midland, is probably an older negative item. As a collection account gets older on your credit report, the impact to your credit score will often be less and less. As soon as there is a freshness to the collection item, as will occur when the collection is paid or settled and showing now zero owed, your credit score will take a dip. The drop to your credit score is only temporary in a situation like this, but it will typically last longer than the 45 days you are concerned about.
Just to be certain, are you waiting for the collection account with Midland to be updated as paid, or for it to be removed? If removed, you would likely see the credit score increase quickly.
Anyone with similar issues dealing with settlements, credit reporting and scoring, post your questions and concerns below for feedback.