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Will paying off collections improve score?

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kamila7
Contributor

Will paying off collections improve score?

I want to pay some of my collections completely, will that help (change) my score?  If they are paid how long before they come off...ever?
 
Thanks!!
Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

Re: Will paying off collections improve score?

That is a good question and like to hear input from members on this.  I know that it is discussed from time to time. 
Message 2 of 10
Anonymous
Not applicable

Re: Will paying off collections improve score?

No.  Paying off collections will not improve your score.  FICO treats paid collections the same as unpaid collections.
 
Collections drop off your reports 7.5 years from DOFD (at the latest, sometimes sooner).  DOFD is the date of first delinquency that led to the collection.
 
Message 3 of 10
kamila7
Contributor

Re: Will paying off collections improve score?

Then why bother paying it off?
Message 4 of 10
kamila7
Contributor

Re: Will paying off collections improve score?

If I paid the collections off should I send a PFD letter?
Message 5 of 10
nicemann
Established Contributor

Re: Will paying off collections improve score?

See I have the same type of question. If I pay it off and tell them I will only pay if they remove it from my credit reports would this be worth it? Collection account is $600.
Message 6 of 10
Anonymous
Not applicable

Re: Will paying off collections improve score?



kamila7 wrote:
Then why bother paying it off?



If you don't pay it, the CA always has the option of suing you, and you may end up with a judgment against you, which will hurt your reports and could mean wage garnishments and levies against your bank accounts.
 
There are other reasons, too, like because it's the right thing to do, but that's up to each individual to determine.
 


Message Edited by cheddar on 03-13-2008 09:29 AM
Message 7 of 10
MidnightVoice
Super Contributor

Re: Will paying off collections improve score?



cheddar wrote:


kamila7 wrote:
Then why bother paying it off?



If you don't pay it, the CA always has the option of suing you, and you may end up with a judgment against you, which will hurt your reports and could mean wage garnishments and levies against your bank accounts.
 
There are other reasons, too, like because it's the right thing to do, but that's up to each individual to determine.
 




Agreed.  And Mortgage brokers don't like unpaid collections
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 8 of 10
Anonymous
Not applicable

Re: Will paying off collections improve score?



kamila7 wrote:
If I paid the collections off should I send a PFD letter?


If they are already paid, send a GW letter.
 
If unpaid you can send PFD letter and maybe they'll accept.
 
Is it past SOL? Have you DV'd?
Message 9 of 10
armywifey85
Regular Contributor

Re: Will paying off collections improve score?

Not unless you pfd.
Message 10 of 10
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