Collections Updating Regularly

[movinonup79]

I am trying to get my scores high enough (and quickly!) to qualify for a mortgage.  I have 2 collections that I negotiated with the OC's and are being deleted soon. I do have a couple of other small collections that are updating every month (one is for $148 and the other $58).  I have been tryiing to GW for about a year and nothing - they refuse every time.  I wanted to find out if I paid these small amounts will it help my score at all since they won't be updating as a key debt in the next month?

Thanks!

[RobertEG]

No, updating a collection to paid status wont help your credit score.  FICO scores the fact that you had a derog, and not how you dealt with it.

FICO keys on the presence of a CA in your CR, and not its status.

[movinonup79]

dang.  I was hoping it would help a little.   I need a boost!  I wish all my revolving accounts would hurry and update since I paid them off so I can see where I am at.

[MarineVietVet]

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@movinonup79 wrote:

I am trying to get my scores high enough (and quickly!) to qualify for a mortgage.  I have 2 collections that I negotiated with the OC's and are being deleted soon. I do have a couple of other small collections that are updating every month (one is for $148 and the other $58).  I have been tryiing to GW for about a year and nothing - they refuse every time.  I wanted to find out if I paid these small amounts will it help my score at all since they won't be updating as a key debt in the next month?  No but at least you won't owe the debt. The amount of the collection doesn't really matter.

Thanks!

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Why don't you consider waiting for a year or so before you buy a house? Even if you raise your scores to the bare minimum remember that it's not just FICO scores that are looked at in a mortgage application. It's your entire credit situation plus income, etc.

In a year you might be in a position to save thousands of dollars in interest paid over the life of a loan by having a higher score.

In any case I wish you well.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

[movinonup79]

Yeah I was thinking of just paying it to not have it on there.  My income is good, I only have a car payment, just paid all my cc's off except $600 to Tribute and a few collections (which should all be off soon other than the couple that won't delete).  There is a house I really want and they payment (even at a higher interest rate) is comparable to the price I pay in rent - and of course the tax credit is a bonus.  Also, I'm currently running out of space where I'm living, so it would be a better space situation.

Thanks for your input!

[RobertEG]

The best advice I can give now is to offer the unpaid collection agencies payment in full, yes in full, in exchange for their prior agreement to delete their collection from your CR,  A PFD offer. The best chance for their acceptance.  If you offer payment for less than the full amount, your chances of acceptance go down.

You cant ask for a GW deletion on an unpaid debt. 

[movinonup79]

^^ Yeah that was my mistake above - I meant to say I have been sending PFD's for about a year.