If a company name appears on your report that you do not recall doing business with, your original account may have been sold to a different company (such as a collection agency). This new company has now taken over the responsibility of attempting to collect the debt from you. You can call the credit bureau that you received your report from and ask for contact information of the company appearing on the report. Most of the time, you can simply call the company and ask about the debt.

Unfortunately, accounts appearing on your report or charges on your statement that you do not recognize could also be an indication of fraud. Sometimes identity thieves open accounts in your name, and you do not find out about them until they appear on your credit report. If after calling the lender, you still don't recognize the charge, you should consider this possibility. For tips on dealing with possible identity fraud, check out What Can I Do to Resolve an Identity Fraud Situation?

In order to pay off a collection account, simply contact the agency listed on the report and tell them you would like to pay off your account. Unfortunately, the fact that it went to collections may still remain on your credit report for seven years from the date the account became delinquent. However, a paid status can positively affect your credit rating, especially if you have been keeping other accounts current for the past year or so.