Collection Account

[Anonymous]

My FICO scored dropped 25-30 points. I noticed that a new collection account showed on my credit report. Will paying off this collection account improve my score?

[Anonymous]

Yes paying it will increase your score but it will probably take a drop when it is paid but in time will bounce back. I paid one off and took a couple point drop but it was worth it as I felt better having taken care of it. Nothing worse IMO than having an old collection coming back to haunt you as i have found out. I'm Dealing with a collection from the past right now. One more thing you might want to try a PFD first. there is a post on this board for PFD letter check it out.

Message Edited by dekrist on 05-29-2007 12:28 PM

[Tuscani]

Paying won't necessarily raise your score.. but it shouldn't drop it. You need a PFD.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

[Anonymous]

Will not paying it reduce my score further. I have already been dinged 25 points when the collection account showed on my credit report

[Anonymous]

Will not paying it reduce my score further. I have already been dinged 25 points when the collection account showed on my credit report

[Tuscani]

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hardwork wrote:

Will not paying it reduce my score further. I have already been dinged 25 points when the collection account showed on my credit report

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No.. but you should get the PFD if you want your score to bounce back. Alternatively, you can simply let it age. The older it is the less of an impace it has.

[HArley]

Hate to sound unintelligent but what is a PDF?

[Tuscani]

PFD or Pay for Delete.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

[Anonymous]

I spoke with the FICO customer service dept and they informed me that paying a collection account will not improve my score. So a PFD is a good way to go. Furthermore, the customer service dept told me to get a response in writing before I pay the collection agency, that way, should they suddenly have an amnesia attack, and not delete the derogatory, I can submit the letter directly to the credit reporting agency and have the item removed.