Best to Pay or Let "Fall Off"?

[JustineJoy]

 My apologies if this has been addressed elsewhere. I couldn't find anything specifically related. My credit report shows 2 collection accounts. One of which says "Scheduled to continue on record until November 2013" the other says "Scheduled to continue on record until September 2013".

I guess the question is whether or not I should even attempt to pay these off, or if they will actually go away on their own. Both accounts were opened around 2007, and apparently sold to collection agencies. They're the only negative things on my report, and I'm hoping my score will get better if they go away. My Fico Equifax score is at 618 currently, and started at 571 just 2 weeks ago.

Any advice is appreciated!

[Sock]

Unless you really need a house or a car in the next 3 months, can't you just wait and see what your score is on December 1st?

[BetteDavis2013]

I have the same issue. A few things that happened in my "stupid 20's" are scheduled to come off. Do I send a letter to fix or let them fall off?  Also, an original creditorshould come off this year but I just pulled my report and found they updated status to 2012 which re-aged the account to fall off in 2019.  I pulled my records and show the charge off occured in 2006.

[dollar_bill]

You might ask one of the more informed posters around here, but here's my understanding: Regardless of what date the CA put's on the account, the ONLY date that counts is the last day you made a payment on the account.  This is the date your 7 year timer starts, and it's why sometimes paying off an old collection will lower your score because it will reset the 7 year clock. CA's are famous for trying to get you to believe it's not the case, but they cannot change the date of last deliquincy no matter what they claim unless you make a payment.   I'm not well-versed in what happens if you enter into some sort of phone agreement, which they are most likely recording, which is why you aren't supposed to talk over the phone with these guys.

It's why you see so many people push the pay for deletion (PFD) option around here. You satisfy the creditor and yourself by not having the negative line on your report.

[guiness56]

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@dollar_bill wrote:

You might ask one of the more informed posters around here, but here's my understanding: Regardless of what date the CA put's on the account, the ONLY date that counts is the last day you made a payment on the account.  This is the date your 7 year timer starts, and it's why sometimes paying off an old collection will lower your score because it will reset the 7 year clock. CA's are famous for trying to get you to believe it's not the case, but they cannot change the date of last deliquincy no matter what they claim unless you make a payment.   I'm not well-versed in what happens if you enter into some sort of phone agreement, which they are most likely recording, which is why you aren't supposed to talk over the phone with these guys.

It's why you see so many people push the pay for deletion (PFD) option around here. You satisfy the creditor and yourself by not having the negative line on your report.

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Almost got it right.  It is from the DoFD which is the date of first delinquency and never bringing the account current which led to the charge off or collection.   You can make a payment after a CO but that date wouldn't be used.

[RobertEG]

In my opinion, its not a one or the other decision.  CR exclusion relates to means of discovery of the unpaid debt, while payment discharges the debt.

Credit report exclusion of the collection provides a partial shield against others becoming aware of the unpaid debt by seeing a collection in your creidt report.

Once excluded, the debt still remains unpaid, and could still be discovered by means other than seeing an unpaid collection.  Regardless of score improvement based on CR exclusion of the collection, awareness of unpaid delinquent debt can be a basis in and of itself for futher decline of new credit.

Paying discharges the debt, thus enabling one to state that they have no unpaid, delinquent debt.

Paying can also, if they should accept a PFD offer, get the collection removed prior to its exclusion date of 7 yrs plus 180 days from the DOFD on the OC account.

Paying or not paying the debt has zero effect on the CR exclusion date, which is based ONLY on the DOFD on the OC account that created the debt.

It wont extend the date the collection can continue to be shown in your credit report.