Sigh its a long post but I didn't want to make a separate thread for it. I never had a credit problem so I'm really confused, and would appreciate any feedback.
I have a semi-fraud problem for my credit report.
I've had near 800 credit score for past few years, but saw that it dropped to 600s today.
Turns out... I signed up for RCN wifi with a roommate that I lived with for 1 day, using my ssn. But something came up and I had to move to a different state that day, so I basically moved out on day 1. The bill was like $20, so I just asked her to pay it off whenever it comes in the mail for the first month, and switch to her account.
Well she didn't fucking pay, and I didn't follow up thinking it's just goddamn twenty bucks. Turns out the internet provider was trying to get a hold of me for a year in that address I lived for a day, gave up, and sold my debt of now $150 to a collection agency.
Now, I don't care about the $150. I am more than happy to pay it off, but I know that doing so will still have that adverse account on my credit report for next 7 years. I need to buy a car and a house within next couple of years, and I don't want a stupid $150 internet bill that I didn't even know existed to pull me down.
What are my options?
I told the internet service rep about the situation, and she said I need to file a police report for identity theft and send that to her. But its not really an identity theft... And I don't know if I want police involved for $150.
I heard that I should never call the collection agency directly, and that even if I pay, it will hurt my score for next 7 years.
Someone said to hire Lexington Law for $200 and they'll remove it for me from all 3 bureaus. Now I'm wondering how the heck they do this, and if I should just let them fix. The shitload of negative reviews online also scare me away.
Is there anything/nothing I can do?