@chucky1234 wrote:I currently have a collection that reports every month. I owe $894 and can pay it off. The big question if I pay it off will it hurt my score or no? I am in the process of purchasing a home 9 months from now. Thoughts? Suggestions?
Paying it off stops the monthly reporting and it can begin to age so your Fico score can begin to recover. I would first attempt the PFD.
Some CA's will agree and follow through but won't put it in writing. YMMV.
@chucky1234 wrote:
@gdale6 wrote:
@chucky1234 wrote:I currently have a collection that reports every month. I owe $894 and can pay it off. The big question if I pay it off will it hurt my score or no? I am in the process of purchasing a home 9 months from now. Thoughts? Suggestions?
Paying it off stops the monthly reporting and it can begin to age so your Fico score can begin to recover. I would first attempt the PFD.
Thanks thats the plan will call tomorrow and request for PFD. I should get it in writing if they agree? Over the phone verbal agreement is not valid.
As stated in post above some will not put in writing but agree verbally. Getting it in writing is gold standard but dont let that derail the negotiation, you can record the call if you wish. I dont know where this verbal agreement isnt valid comes from, it is valid especially if they are known for doing it.
@Anonymous wrote:
@gdale6 wrote:
@chucky1234 wrote:I currently have a collection that reports every month. I owe $894 and can pay it off. The big question if I pay it off will it hurt my score or no? I am in the process of purchasing a home 9 months from now. Thoughts? Suggestions?
Paying it off stops the monthly reporting and it can begin to age so your Fico score can begin to recover. I would first attempt the PFD.
Before I heard of myFICO, age of credit, length of history, I had about 9 collections showing up on my report. I finally grew up and wanted to clean up my act, so I took care of them. Paid them all off and disputed for removal from the CRAs and the collection agencies. They all happily obliged and within 10-12 weeks, they all disappeared from my credit history. I didn't know what average age of credit means then. I didn't want any negatives showing on my report. Well, with those collections, I had an average age of credit of 4.5 yrs. After removal, I was ZERO. Didn't have any loans, credit card to offset that.I guess I could've just paid them off and let it age off and shouldn't have disputed for removal. Oh well. It is what it is.
Well, that was 2015. Building up slowly. My oldest account is 1 ryr 11 months. Newest is 1 month. An installment loan reporting from Home Depot Project Loan. AAoA is 8 months. At least for me, all that is reporting are positive credit.
Fico AAoA doesnt include CAs or PRs only OCs so your true AAoA was 0 anyway. Payment history is 35% of Fico pie, AAoA is 15%, history of something always trumps AAoA concerns.