Rebuilding Your Credit

[prioritybubble]

I have a question for all the experts out there. I'm in the process of cleaning up my report. I have a question for the experts. Is it worth it to pay off a collection on a debt that is 6 years old? I moved to Paris 6 years ago and had my mail forwarded to me but I never got a notice that one of my utility bills claimed I owed them $98. I never checked my credit report until a few months ago and saw there was a collection on my report. I'm not sure how much of a reduction in my credit score is caused by this but it's listed as one of the main reasons there is a reduction in my FICO score as it's a collection on my account. It's the only collection on my credit report. I sent in a letter to the collection agency offering a PFD if they delete it from all 3 credit reports. If they do, do you think it will cause any increase in my score? My TU is saying it's 709 and EQ is 702. If they remove it will it cause any jump even though it's already 6 years old? It is falling off in a little over a year anyway.

[wally2159]

I had one deleted that was 5 years old and it did nothing for the score

[msloryn]

I hope others chime in. I have four 5 1/2 - 6 year old collections too....

[guiness56]

If the collection is reporting correctly it should not be counting toward history.  If it is not reporting correctly and you get it removed you will lose the history on that account which could cause your score to lower.

But again, it is your only negative so you may see an increase.

It really depends on how it is reported.

[riknunez]

I had one item that was 6 1/2 years old fall off and I saw a 23 point increase. The next month, a second CA item fell of and got 29 point added. My EQ report is now free of CA items. I did not think it was possible to get this many points from the items being so old but it worked out for me. They were both only 2 months apart. You may not see the same increase. It all depends on so many other factors.

[prioritybubble]

Thanks so much for the advice everyone.  I'll try it.  I already sent in a letter to the collection agency offering a pay for delete.  I don't see any reason why they wouldn't accept it as it's going to fall off next year anyway.  I hope it causes a jump in the credit score.  I'll post if it does/doesn't after it comes off.

I have read in various forums some people saying a collection that old coming off didn't add on any points.  And others said it did cause a bump up so I'm curious how it works out.

[prioritybubble]

riknnunez,

Just out of curiosity, how much were the collections you paid off?  Where they big?  Mine is only around $100.  Not sure if that makes a difference.

[RobertEG]

My question is on the date of the debt.  What are you basing it on, for purposes of credit scoring?

What is the actual DOFD on your account with the original creditor?

CA accounts drop, not based on any activity with them, but only upon the date of your 30-day delinquency with the original creditor which led up to the collection account.