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Valued Member
destinyschild
Posts: 30
Registered: ‎06-02-2007
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Does Payment Plan affect FICO

How does a payment plan affect your FICO scoring?
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007
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Re: Does Payment Plan affect FICO

In terms of what?  Paying off an account gone to collections?   If so they it does not have any impact and maybe a slight negative impact.   Fico doesn't reward points to people who have had their accounts gone bad.      There are a couple positves though,  1.  The obvious positive is, it gets rid of one more debt out of your life and don't have to worry anymore about what the creditor or CA is going to do.   You don't have to worry about phone calls or not wanting to check your mail.   2.   If the CA is reporting each month that will stop the negative dings you've been getting monthly.  3.   It will lower your debt to Income ratio, which is always a plus.   A big plus in lenders eyes. 

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