Paying an Old Collection. Did I just screw my loan?

[Anonymous]

So, I have this collection from 2004, but it is being reported as 2008 (the date the CA purchased the debt from the OC). It is a small amount and my processor told me it would have to be paid. I negotiated a PFD and paid it. I have all the documentation of the PFD agreement and proof that it is paid. CA stated it the letter that they would be deleting it.

My question is: If they don't delete it, will having paid it screw my loan? Before I paid it, my scores were EQ: 765, TU: 671, and EX: 659. Will updating the DOLA drop my score enough that I will no longer qualify for my loan? The threshold is 620.

This CA sends updates to EX and TU every single month. It shows as a missed payment every month since June 2008. I'm not sure how it will affect my score. I know that if they delete before my lender pulls my credit again I will be fine. I'm just wondering what will happen if they don't. Thanks!

[pmarti8]

Hello,

From what I understand the Credit Bureaus made a change to their scoring system afer complaints from consumers that they were being penalized for paying old debt.  What sense does that make? So they claim that paying an old debt will not "renew" the date of last activity and thus make the debt look more recent than it is.  So in a nutshell, paying your old collection "shouldn't" affect your score.  Besides, from the scores you provided you should have some wiggle room either way.  Good luck!

[happy0510]

You should be fine.  If you have the PFD documentation, you should be ok.  I bet they will follow through with the delete.  It can range from only hours to longer. Have you checked your CR's yet?

[Anonymous]

I've been checking my EX almost daily. Just trying to head off any possible problem. Don't want another house to fall through.