Collection on credit report

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    Hello all a collection account just popped up on my credit report I wasn’t aware of this charge and will pay it today. Does this disqualify me for 24 months or once I resolve it I can write a LOE and continue as I’m in home search stage. Thanks for all input

    • This topic was modified 1 month ago by marvb.

    I believe if you pay it off completely and write a LOE you should be OK. The 24 month rule is for non-paid debt.


    Hello marvb,

    Once you pay it off, make sure that you get a letter from the collector that you have settled the account and it is considered paid in full, and submit the letter to your file immediately. Also show on your bank statements where you paid it off. It will take two or three months for the payoff to catch up with the credit report, so getting the letter is imperative to avoiding a delay.

    Had you made payment arrangements instead, you would have had to build a 12-month on time payment history before you could proceed, or the collection would have had to have been more than 24 months old to disregard it.

    Tim Trumble
    Online Operations, NACA">



    If the collection is more than 24 months old but recently sold to a new company and reported again, does it have to be paid or does it fall under the 24-month rule?

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