Confused about paying collctions

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So I am trying to get a home loan my scores pulled by my lender are lower than those on myFico.com.  The ones pulled by the lender were 577 EQ 580 TU and 611 EX.  The LO said he needs 5 points in order to do a manual underwrite or a 585 (I am in Colorado in case that matters).  He requested that I pay off a collection I have that has a DOLA of 5/2005 it was for a cc I had and stopped paying long before that time when I was young and didn't care.  He is claiming by paying this off we can do a rapid rescore and get me the 5 points.  Everything I read on here says not to pay off these debts as it would hurt me rather than help me.  Is this correct and if so why would the LO be telling me to do this? 

[Anonymous]

If you have a little time, maybe you can do a PFD.  That would help your scores.

[Anonymous]

Is it a collection...or a charge off???...if he's telling you to pay the CO...he's right that can give you an increase....because the balance on the CO is still being calculated...in your overall UTL and affecting your scores...now if it's a collection...that's another thing...only getting it deleted may increase scores...but sometimes in that case...you lose points...due to history...but if it's a CO....PAY IT...it WILL help...

[Anonymous]

Dallas stated in another thread if a LO tells you to pay collections before applying find another LO. I think Dallas gets on here early in the mornings and I'm sure he is going to give you his opinion. I personally don't know, I've been doing the same thing repair & rebuilding. Good Luck

[DallasLoanGuy]

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mce wrote:

Dallas stated in another thread if a LO tells you to pay collections before applying find another LO. I think Dallas gets on here early in the mornings and I'm sure he is going to give you his opinion. I personally don't know, I've been doing the same thing repair & rebuilding. Good Luck

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paying to get a score increase is different.

my mantra is to NOT pay collections for 'approval'. many lenders do not ask collections be paid. fha doesnt.... so why should the lender?

and you dont need 585 either. plenty will manual underwrite at 580