Should I dispute the adverse item on my credit report or just pay it off? Also, will a balance transfer help or hurt me? Last July I moved and closed my account with my old cable company. I returned the equipment and paid the balance. I got a notice saying I owed them $69 but I figured my check had crossed in the mail. I called them and the rep said my account was at $0. So, I forgot about it and ignored the mail they sent me. The cable company itself never called me to get the money. A collection company started leaving messages for me about a month after closing my account, but they didn’t say for whom they worked and I never called them back. This company is also notorious for calling the wrong person and as they never said my name, I assumed they must be calling the wrong number. Now the $69 is on my credit report and I’m pissed because 1) I was never told it was going to collections and 2) I don’t really owe them the money (unfortunately I have no proof of returning the equipment). I don’t have the energy for a drawn-out battle with them - I just want it off my credit report. Should I just pay them or won’t it matter?
Another thing hurting me on my score is that I have two credit cards that are maxed out. The interest rates are absolutely obnoxious (28% and 29%). The third one has a really high credit limit and a low balance, and it could easily accommodate the balances of the other two. The balance transfer rate is 9% and the fees would amount to $200. The rate is only good until May 2009 and there’s NO WAY I will have them paid off by then, but then the rate just jumps to the normal APR of the card (25%) which is still better than the other two. I have had this card forever and only paid late once. I am likely to be adding another $5000 to the card soon because of the wedding/honeymoon (I’d still have room for the other two balances.) Should I do the balance transfer?