A lesson on credit from Bonnie Ericksen
This was posted as a comment by Bonnie Ericksen of Real Estate Snippets and deserves front page. Lar
A colleague wanted to do the right thing so after getting her scores up high enough for refinancing at a better rate, she wanted to complete the process by paying off a small, but old collection account. Big mistake. She watched her credit score plummet overnight because what was an €śold debt€ť (the collection account) became a current bad debt. Now she has to wait the time out once again to raise the scores back up.
