Advice needed on paying old collections

[Anonymous]

Hi all,

  I have 4 old default accounts (that are valid) that I am considering paying.   I have not received any collection attempts on any of these accounts in years and they are all set to fall off my reports by March of next year (earlier if I could get EE on them).  The total balance of all 4 would be about $3,500.00.  There are 2 HSBC (I think one used to be Orchard Bank) and 2 that are SYNCB / Belk. This one was one account so I have no idea why it reports as 2 accounts with different balances. Anyway,   I had a few questions:

1) Is paying them now just a dumb idea considering I am in garden mode anyway for at least the next year and the accounts are set to fall off my reports by then anyway?  I would like to eventually re-establish my relationships with these companies which is my only reason for considering this. I am not even sure if HSBC or Belk still own these accounts any longer but I assume not so paying  them via a CA may not do any good anyway.

2)  Since the DOFD is nearly 7  years ago on all 4 accounts, would making any kind of payment start the time frame over again?  The last thing I want is either of these accounts to hang out on my reports for another 7  years.  There seems to be conflicting info out there about what will or will not start the dates over again. I'm well past the SOL on all my accounts since I live in Alabama. and my defaults were in 2009 and 2010. 

I saw on another thread where someone had success in getting HSCB to re-open one of their accounts after a pay in full, even though the account was with a CA at the time.  I was considering offering not a PFD but rather a PIF in exchange for a re-stablishment of credit.  This actually worked for me with AMEX (though it was their offer, not mine) and I think the new account would do me more good than a delete, especially being so close to the fall off date.  

My scores are 587-603 (up 30-60 pts since October), I have 2 Cap One unsecured cards opened 9/2015, the AMEX unsecured with a $1,000 limit will open in April and I have a few new retail cards:  WalMart $400, Overstock $800, Amazon $800, VS $500, and NY&C $300, most of which I got via the shopping cart trick.  Big banks will not approve me right now given that I burned most all of them when I defaulted in 2010.  I just tried this weekend and got declined across the board (not shocking).  

I would appreciate any advice on this before I take the jump of writing letters, calling, and emailing and waking the sleeping beast, so to speak. 

THANKS!!!

[Anonymous]

If you own the debt, IMO you should pay it. A paid collection looks a whole lot better on a manual review than unpaid. Then you can start GW'ing them for hopeful deletion.

[Anonymous]

Do you have judgements on any of them?

[Anonymous]

No judgements for any of these accounts. I do have a few judgements on other accounts but those are paid. just still reporting and apparently they will for the rest of time, or 7 years, which ever comes first.  

[Anonymous]

1.  Yes it would be. You gain nothing by paying them off.  Nothing.  When you pay them off, they'll be marked as paid on your record and since they're new they'll be on there for another 7 years.  Your score will actually drop.

2.  Any contact acknowledging the debt will start that clock again.  You call them and they say but they're yours right and you say yeah, 7 more years.

Unless you have a need for credit in the short run, I woudln't touch them.  Get some secured lines of credit that don't require a good credit score and then once they drop off you'll be doing quite well.

There are lots of banks and credit unions out there.  Probably most better than the one you used.  No need to have a relationship with them.

[Anonymous]

If you choose to pay them, they WILL NOT remain for an additional 7 years. They will still fall off at 7 years from DOFD.