2 Accounts in Collections

[asacayon]

Hello everyone,

So I let my mother use my credit to get an apartment (which I didn't mind). However, I never allowed her to use my credit for utilities, now I know utilities don't impact you're score, but when you don't pay them the company send it into collections. Thats right I have about $1600+ worth of collections because my mother decided to not pay her internet bill for like 6 months. I am 21, starting out on my financial journey and I already have 2 accounts in collections.

My question is, should I just pay them off and call the companies to remove the accounts once paid or should I wait the 7 years for them to lower.

I am trying to finance a car soon, which is why I'm trying to improve my score.

[ghostlyone]

This sounds like my financial start. I wasn't tracking anything financial other than my bank balance, then got out of college to find out the only line of credit with my name on it (handled by my parents) was delinquent. Only $400, but 90 days past due and reported, so my score was trashed. I paid it off immediately. On your report, "delinquent, but now paid" looks way better than "in collections, unsettled".

So it just sucks, and it took me another 8-9 years of perfect credit history to crack into the 800+ club. Most of that time I was sitting in the upper 600s because it takes like 7 years for a delinquency to drop off of your credit report. Oh well. But still, I definitely vote against having something in collections hang over your head until the debt collectors give up. That's no way to live. 

[CassElise]

Usually this is frowned upon. But I had a friend who was in your same shoes. She was helping her ex sister in law, since she had kids, to keep lights and heat on in the house. Well, her sister in law never paid her bills on time and utility companies would deny her knowing she was delinquent. 

So then my friend started getting letters in the mail about. She's tried talking to her about making plans to have her pay her dues. Well, talks are nice but nothing changed. She ended up having to call them and tell them that her identity was stolen, since it wasn't her current residency. 

Now, I'm one for helping others, but if it has any possible negative impact on your personal finances (even for the future), but don't do this! You can find programs that will help them better than your own personal identity. Best of luck!

[sunsets55]

that's too bad...can your mom help pay down the debt?  well can you work out a payment arrangement with them?  other than that, maybe give a high down payment for the car, but i don't know any other options.

[sunsets55]

also in the future, i wouldn't let anyone use your credit for anything.  it's just not worth it in the end.  it's up to you, but see their deliquency also reflects on you and like the other person said, it can take a long time to get that off your credit report.

[Chadsoldier]

I wouldn't pay them anything bro!!  It shouldn't be your problem 

[Hadavis17]

Dispute them as not yours. If you didn’t give your mother permission, she shouldn’t be using it.

[Plainjane · Accepted solution]

Im in the same boat as you are with the account in collections and i was told I needed to start paying on it. I work three jobs while a full time student and im broke so I pay $25 or more sometimes a month on my 1700 debt so that way when I go to get a car, they will see i am making an attempt on paying.

[GMan6]

Same bro i have one from a school and one from a credit card that is because my friend messed up my bank because i let him drop his check in it but it bounced  that was my fault for trusting someone