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Deal with Minor Collection Now or Wait till After Next Round of Apps?

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mrjohnsonsgoals2
Contributor

Deal with Minor Collection Now or Wait till After Next Round of Apps?

Hey everyone,

 

So, I've been spending my Chase Freedom card a good amount and will plan to go for a sub 10% UTIL rate when my statement cuts in about a week. Right now, the goal is for me to garden and build enough credit so that come my time out of the garden, I'm able to apply for a Gold Amex Delta, a Discover It, and a Capital One Quicksilver (maybe).

 

However, the one collection from Jan 2013  I referenced in my last post here on (only) my Experian report about a $241 Time Warner bill still remains, and I've been figuring out ways to either call Time Warner or call/write the CA. I know that people have spoken about getting in with Amex with a minor baddie, and was wondering if anyone could corroborate that as well. 

 

Now, my scores are in my siggy (alright for someone who's starting to build credit, I've been told), and by the time September comes around, I'll hopefully have 7 months of 10% UTIL reporting/PIF after all statement cuts on my Chase Freedom and 7 more months of student loan payments with over the minimum amount paid + the obvious 7 more months of credit history.

 

What I'm wondering is, should I try and solve my collections account in hopes that it'll be shot up and cleared by the time September rolls around, or simply sit on it, build my score up, apply to my cards in September and then try to take care of my collections afterward? I know that the sticky post said opening an old collection could result in bad things, like a major hit to my score/reporting to all three bureaus (which I really don't want)/lawsuit. I am however, prepared to PIF.

 

I'd love your thoughts on the matter. Thank you!


Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

Message 1 of 14
13 REPLIES 13
randyrhodes
Established Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?

Depends on how old the CO is. If its several years old and not reporting monthly then when you pay it it'll update to current and could cause a point drop. The only way I'd pay it is if they'll agree to PFD. Other wise let it fall off then pay it. Then there's nothing on your report to update. Good Luck
Message 2 of 14
mrjohnsonsgoals2
Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?


@randyrhodes wrote:
Depends on how old the CO is. If its several years old and not reporting monthly then when you pay it it'll update to current and could cause a point drop. The only way I'd pay it is if they'll agree to PFD. Other wise let it fall off then pay it. Then there's nothing on your report to update. Good Luck

It's about a year old now and not updating monthly, last updated in Jan 2013. So there's quite a way to go, but I just feel like I can build up everything and not take the hit now. 


Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

Message 3 of 14
titanofold
Established Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?

I'd deal with it now. Better to have a paid collection than an unpaid one. You might be able to negotiate with TWC, but you won't know for certain until you try.

Scores2013-09-21Current
Equifax630 (LP)755 (CK)/749 (Quizzle)
Experian640 (FCR)FICO 707 (Amex)
TransUnion588 (CK)FICO 754 (Barclaycard)
Message 4 of 14
notfancy
Valued Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?


@titanofold wrote:

I'd deal with it now. Better to have a paid collection than an unpaid one. You might be able to negotiate with TWC, but you won't know for certain until you try.


I agree. If you can't negotiate a PFD, it's a relatively small bill and still a pretty recent collections item. If you pay it, you can then try to send GW letters til you hopefully find someone to remove it.

 

Collections are bad paid or unpaid, but at least if it is paid, and you get a denial for credit, on recon a real person might look at a paid collection more favorably than an unpaid one.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 5 of 14
mrjohnsonsgoals2
Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?


@notfancy wrote:

@titanofold wrote:

I'd deal with it now. Better to have a paid collection than an unpaid one. You might be able to negotiate with TWC, but you won't know for certain until you try.


I agree. If you can't negotiate a PFD, it's a relatively small bill and still a pretty recent collections item. If you pay it, you can then try to send GW letters til you hopefully find someone to remove it.

 

Collections are bad paid or unpaid, but at least if it is paid, and you get a denial for credit, on recon a real person might look at a paid collection more favorably than an unpaid one.


That's probably true. My plan is to call TWC and negotiate first, then attempt to deal with CA if that fails. Are CA's less likely to budge with a PFD if a collection is small? 


Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

Message 6 of 14
notfancy
Valued Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?


@mrjohnsonsgoals2 wrote:

@notfancy wrote:

@titanofold wrote:

I'd deal with it now. Better to have a paid collection than an unpaid one. You might be able to negotiate with TWC, but you won't know for certain until you try.


I agree. If you can't negotiate a PFD, it's a relatively small bill and still a pretty recent collections item. If you pay it, you can then try to send GW letters til you hopefully find someone to remove it.

 

Collections are bad paid or unpaid, but at least if it is paid, and you get a denial for credit, on recon a real person might look at a paid collection more favorably than an unpaid one.


That's probably true. My plan is to call TWC and negotiate first, then attempt to deal with CA if that fails. Are CA's less likely to budge with a PFD if a collection is small? 


I don't see why they would be. I had a PFD on a small medical collection that was successful. I think it was $108?

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 7 of 14
mrjohnsonsgoals2
Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?


@notfancy wrote:

@mrjohnsonsgoals2 wrote:

@notfancy wrote:

@titanofold wrote:

I'd deal with it now. Better to have a paid collection than an unpaid one. You might be able to negotiate with TWC, but you won't know for certain until you try.


I agree. If you can't negotiate a PFD, it's a relatively small bill and still a pretty recent collections item. If you pay it, you can then try to send GW letters til you hopefully find someone to remove it.

 

Collections are bad paid or unpaid, but at least if it is paid, and you get a denial for credit, on recon a real person might look at a paid collection more favorably than an unpaid one.


That's probably true. My plan is to call TWC and negotiate first, then attempt to deal with CA if that fails. Are CA's less likely to budge with a PFD if a collection is small? 


I don't see why they would be. I had a PFD on a small medical collection that was successful. I think it was $108?


Ahh. Care to mention how the letter was written/if you used anything from here? 


Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

Message 8 of 14
notfancy
Valued Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?


@mrjohnsonsgoals2 wrote:

@notfancy wrote:

@mrjohnsonsgoals2 wrote:

@notfancy wrote:

@titanofold wrote:

I'd deal with it now. Better to have a paid collection than an unpaid one. You might be able to negotiate with TWC, but you won't know for certain until you try.


I agree. If you can't negotiate a PFD, it's a relatively small bill and still a pretty recent collections item. If you pay it, you can then try to send GW letters til you hopefully find someone to remove it.

 

Collections are bad paid or unpaid, but at least if it is paid, and you get a denial for credit, on recon a real person might look at a paid collection more favorably than an unpaid one.


That's probably true. My plan is to call TWC and negotiate first, then attempt to deal with CA if that fails. Are CA's less likely to budge with a PFD if a collection is small? 


I don't see why they would be. I had a PFD on a small medical collection that was successful. I think it was $108?


Ahh. Care to mention how the letter was written/if you used anything from here? 


I didn't write a letter. I called the original creditor and pleaded my case, and said I have a credit card in my hand, if you are willing to call the collection agency and have them delete this, I'll pay you right now! And she agreed LOL. I got a letter from them later stating it was done. (Interestingly I discovered it is still on my EQ report today so I'll be calling again)

 

I actually spoke with a couple people there at the medical center (it was regarding an ER visit a couple years ago) and they were nasty so I wrote them an email stating that I want to take care of the  debt if it is mine, but I was appalled by the rudeness I experienced.

 

I'm shocked I got a call back by that much nicer lady, to be honest.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 9 of 14
mrjohnsonsgoals2
Contributor

Re: Deal with Minor Collection Now or Wait till After Next Round of Apps?

Fancy, you're the most inspiring person on the Internet. I think I know the path i must take now! Did they ask for your address on the phone, or did you make sure that they promised they would send you a letter? I think I'm finally deciding on an approach for this, and would like to know! 


Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

Message 10 of 14
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