1. Pay it off in full – Not typically an option because very rarely do the clients have the funds to do so.
2. Consolidation –
Only takes about 90 days to consolidate and resolve CAIVRS
issues. However, you push forward the last activity dates, DLA, and also introduce a new credit trade line that dilutes the length of the credit history. So you will normally see a drop in credit score.
3. Rehabilitation – It is the slowest of all the options, but is the best thing for the clients’ credit scores. It is a 9 month commitment and once the client makes 9 consecutive payments, they will change the collection status to a good standing status. This…