@Anonymous wrote:
so what exactly are saying? the collections are going to plummit my score.. and paying the cc will have little effect for me? why'd I bother is really what im starting to ask myself. I did my homework.. I met with 3 lenders.. who all said the same.. we needed to settle with old collections.. so I did, and now what? even paying my old collections isnt much of a difference?
At this point, have all the collections been paid off? If not, what are the balances of any unpaid collections?
Unfortunately, meeting one lending requirement (paying off collections) often conflicts with meeting another requirement (Fico score). Lenders usually want collections of any significant amount paid off so there is no potential for a future lien or other action that can affect your ability to make payments (as Mickie said).
Assuming your utilization is good, and there is nothing more that can be done to remove any of the collections accounts, can you improve another area, such as age? Do you have a close relative with a old account (with little or no utilization) who could add you as an AU and increase your oldest account age and average account age? Of course, an AU would be noticeable on review, but if it counters any collections-related score drop it might still give you a chance now, instead of needing to wait until some of the collection tradelines drop off ...
