What if you Didn’t Have To keep paying on that Collection? If it can be removed, you may NOT OWE ANYTHING. Let’s find out Together.
Credit Truths
Let’s clear up a few things about your credit that most people get wrong
A lot of people think they understand how credit works… until they actually try to use it. The truth is, there’s a lot of misinformation out there. Here are a few things you should know:
Credit Karma shows a VantageScore, but most lenders use FICO scores. It also may not show every detail from all three credit bureaus.
What this means in real life:
It’s very common for your Credit Karma score to be 20–100+ points different from what a lender sees.
Why this matters:
You could think you’re in a good spot, and still get denied.
A lot of people rush to pay collections thinking their score will go up right away. But even after it’s paid, that account can still sit on your credit report and continue to affect you. Paying off a collection does not remove it from your credit report. It just updates it to “paid,” and it can still hurt your score.
What actually happens:
- Paying a collection may increase your score 0–20 points (sometimes no change at all)
- Removing a collection can increase your score 30–100+ points, depending on your profile
Why:
Your score is impacted more by the presence of the negative account than whether it’s paid.
Why this matters:
Paying it off might close the debt, but removing it is what actually helps your credit more.
You don’t just have one credit score — you have multiple. FICO is what most lenders use, and VantageScore is what apps like Credit Karma show you. Since they calculate things differently, your scores can be completely different.
What this means in real life:
Your scores can easily be 20–80+ points apart at the same time.
Why this matters:
Don’t rely on just one app when it comes to your credit.
Payment History — 35%
This is the biggest factor.
Impact:
- One late payment can drop your score 50–100+ points
- Multiple negatives (collections, charge-offs) hurt even more
Credit Utilization — 30%
This is how much of your credit cards you’re using.
Impact:
- Using over 30% of your limit can start lowering your score
- Maxed-out cards can drop your score 50–100+ points
Example:
If you have a $1,000 limit, you should stay under $300.
Credit Age — 15%
How long you’ve had credit.
Impact:
- Closing older accounts can lower your score
- Longer history = more trust
Credit Mix — 10%
Having different types of accounts (cards, loans, etc.)
Impact:
- Smaller factor, but helps show lenders you can handle different credit types
New Inquiries — 10%
Applying for credit.
Impact:
- Each hard inquiry can drop your score 3–10 points
- Too many at once can make you look risky
The biggest MISTAKES people make
Most people think:
“Let me just pay everything off and my score will go up.”
But that’s not always how it works.
The truth:
- Paying things off helps your debt, but not always your score
- Negative items still affect you until they’re removed or age off
Why this MATTERS
Your credit can affect:
- Getting approved for a car or home
- Your interest rates (which can cost or save you thousands)
- Renting an apartment
- Business funding opportunities
Most people don’t find out what’s really on their credit until after they’ve already paid their debt.
I do it the other way around — so you know exactly what you’re getting into first.
Ready to see what’s really AFFECTING your credit?
If you’re serious about fixing your credit the right way, the first step is understanding what’s actually on your report.
If you don’t want to go through this process alone, we can handle it with you.
Start with your FREE consultation — no guesswork, no pressure.