So, 6 years ago I lived in a apartment complex near campus. Long story short, the apartment complex pulls this major scam when everyone moves out and I get stuck with a $177 bill on my credit report. A while ago I looked into getting it removed but I never really got around to doing it. Now, I am shopping for mortgages and I am wondering if it would make sense to pay it. Would it give me a solid bump in credit score? The rest of my bills get paid in full every month and I have never missed a payment. Credit Karma shows 750, but BOA said it was between 690 and 740. Would it help?

It probably would help. But the mark is still going to be there. You will be asked to explain it. You better have a better explanation than you posted here. If it was a scam why did you not report it to the police? It sounds more like a dispute/misunderstanding among roommates that you did not handle responsibly. If so, admit it, it happens. But blaming others is far less likely to get you a mortgage than accepting responsibility and showing you have changed. You might need to wait several months of a year until after you paid it off before anyone will lend you money.

I would challenge it at the credit bureaus. If that doesn't work, I would then contact them, offer them 25% of the original amount and you will receive a letter in writing that they will remove the negative account or any future negative reporting from all three of the credit bureaus. once you receive the letter, you will pay them.

any money exchanged should be for removing the negative account. I would first route through the bureaus. It can be a slow process, so be warned.

If you are applying for a mortgage in the near future, DO NOT DISPUTE the charge.

Fannie Mae, Freddie Mac, and FHA all require additional documentation on disputed credit accounts, up to having the dispute removed. This can cause massive delays in getting your mortgage closed.

How is the account reporting on your credit? Generally a credit report will show you 3 dates:

The date the account was opened
The date that the account was last active
The date the account last reported to the credit bureaus

If the account in question has been sitting dormant for a number of years (date last active and date last reported) then I would leave it alone. Paying off the debt could cause those dates to be updated to this month, thus making it fresher and potentially causing a ding to your credit score.

Generally speaking, most lenders won't bat an eye at a single collection of $177. A few may ask for a letter of explanation, but considering that it is 6+ years old, I doubt it.

I can agree with this especially since you're applying for a mortgage. If you pay it, it will show as a paid debt but it would recycle the DLA.


I would be ready to explain it nonetheless.