Collections Questions and Help

[bigB12]

Hello,

I'm new here and had some questions.  I've been browsing these forums for some time for lots of information and it has been quite helpful.  I decided to join because I recently applied for a mortgage.  I was approved!  Although I was approved, I did get a copy of my credit report which had 3 different collection accounts on it.  My scores were as follows:  

TU: 601
EX: 636
EF: 638

Not terrible enough to not get approved, but still not where I want to be.  As I was aware of some of the collections accounts I was surprised to see one of them.  My collections accounts are below:

Discover: Reported 3/14 Opened 8/10 Last Past Due: 3/12

Portfolio Recovery: Reported 4/14 Opened 4/13 Last Past Due: 7/14
(I do not know what this debt is or what it isfor)

CAP1/BSTBY Date Reported 5/12 Date Opened 5/09 Last Past Due 4/12

I was young and dumb, and didn't realize the damage these accounts would do to my credit.  Now that I'm a little older, I'd like to make things right.

My questions are, should I pay all of these collections accounts?  What steps should I take?  Should i try the pay to delete option?  Does anyone have any experience with these 3 credit agencies?  I'd like to increase my scores in the next 4 months.  I was approved for a mortgage, but would like to try and qualify for a better rate. Any info specific to my case would be greatly appreciated.  Thanks in advance.

-BB

[RobertEG]

Unpaid debt can continue to have many lingering effects depending on several factors.

First and foremost, in my opinion, is that any unpaid debt can kill an application for new credit.  Many creditors, particularly when the request for credit is substantial, such as with a mortgage, will require payment of any unpaid delinquent debt as a pre-condition for ay final loan approval.  Apparently, your lendor has not raised that requirement.

Second, its SOL status can determine whether the debt owner can still bring legal action, and obtain a judgment for its satisfaction.

Third, the date of first delinquency on the OC account detrmines how long it can contnue to show in your credit report, and thus affect your score and make it easy for others to become aware of the unpaid debt by a simple pull of your credit report, and seeing an unpaid collection.

However, neither expiration of SOL nor eventual credit report exclusion excuse the debt, and others can still become aware of it by other means, such as a simple request for disclosure of ay unpaid delinquent debt.

Pay for delete is the best outcome, as it both satisfies the debt and removes it from scoring prior to the 7 years plus 180 day from DOFD credit report exclusion date.

It is usually worth the effort to make a PFD attempt.

[Pinkyde]

From my experience looking at CBR's regularly, Portfolio Recovery is usually medical accounts. Contact them and see. If it was the fault of your insurance you may be able to get it removed.

Other than that, I heard pay for delete was the best method. I wish I knew this years ago. Try that first. If they agree, get it in writing.