@DueDilligence wrote:
I have been on the path to rebuilding my cedit score. I obtained a secured credit card 11 months ago and have been making timely payments on that card and my school loans (never missed one payment). I have two collections that are four years old or greater that equal a sum of $450.00. Ive been conscious of credit utilization and debt to income ratios and have had no hard inquiries in the past two years. My question is should I pay off these collections. I've been researching this and have been coming up with contrary information.
An individual I spoke with said that by having these collections that it is leaving my credit stagnat (my credit score is increasing but not how it would with no deragotories). Then I hear individuals say that it will drop my credit score and have more of an impact than leaving it there.
My following thoughts are, okay it will impact my score, but will my score recover quickly and continue to grow at a faster pace than if I would of just left the accounts unpaid.
My biggest concerns are will creditors deny me primaryly because I have derogatories irregardless of my credit score?
To follow up with all this being said, if this is the case I just rather pay the derogatories, take the temporary hit and watch my credit score grow. Also to conclude if this is the case, I wish I just would of paid them a long time ago. Instead of looking at the whole situation as there's no point in doing so, because it would just drop my score.
If anyone has some genuine insight they can give it will be highly appreciated. Thanks to who contribute and have read this......
Okay, do I possess any insight? I suggest that you click on my username and look at a post or two that I've created that discuss my situation that is very similar to your current situation.
1. collections showing up on your report hurt your score. PERIOD. Anyone that is advising you differently is not informed. I suggest that you read through this post like it was the only thing that was important in your life. Because right now, it is.
2. If the collections that are on your account were say, six or six and a half years old, I would suggest that you just ride it out. Because, they are close to coming off. However, if they are well under four or five years, or very recent, you would want to remove them.
3. All of this is going to take time, effort and money(oh, don't forget patience).
In my experience, if the only bad guys holding you down are the collections, work them out with a PFD. One thing I suggest, is that you make sure that you get everything in writing. And be prepared to take action.
