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I have several medical bills in collections. I'm finally ready to start paying them off. Does anyone know how paying off collection debts will improve your credit scores?
Research very carefully before proceeding and include the Rebuilding subforum in your research. Paying collections rarely provided much improvement. You want those derogs removed. It is possible to make matters worse.
Rebuilding subform?
Offering to pay in exchange for CR deletion can improve score.
If no PFD can be obtained, it still goes further than only a consideration of your credit scores.
Paying discharges the debt.
No further collection calls.
No issue of unpaid, deliqnuent debt arising in a manual review, as payment requries update to show paid, $0 balance.
No civil action seeking a judgment (if still within SOL)
No additonal accrual of interest or other charges.
Even after credit report exclusion, potential creditors can still become aware of the existence of unpaid, deliqnuent debt by other means, such as simply requiring disclosure in any credit application.
@Anonymous wrote:Rebuilding subform?
Here: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit
The good news is that medical collections are the easiest to get removed off your reports.
1. Contact the original creditor (hospital/doctor's office/whoever) and ask them to recall the collection for full payment
2. If they won't do it (they CAN, but some may not), contact the collection agency and ask to do a PFD (pay for delete)
3. If they refuse to delete it, pay it anyway, then Google the HIPAA removal method (we are not allowed to discuss this here but you can contact its creator for help)
Thank you for all the suggestions! I will followup on them since I'm eager to get them paid!