Paying off old debts won't hurt your score, but it won't help it either. A PFD will remove the collection and could help your score.
Starting Score: 504
Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
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Forgetting about your FICO score, paying off those collections is the right thing to do and will be looked on more favorably in manual review than having outstanding balances. There are also certain jobs, including my own work, that will see you as a liability with outstanding debt on your credit report. Employers see it as though if you owe money, you are likely to sell your secrets, and therefore you don't belong at the position.
Some of the CAs are coding themselves now as Factoring Agencies and gettinp put in the accounts section.
Starting Score: 504Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
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diabla wrote:" Employers see it as though if you owe money, you are likely to sell your secrets, and therefore you don't belong at the position."
Yes, but don't most people owe money, of some amount?
The amount doesn't matter. If you have a collection with more than $0 balance and aren't at least actively working to reduce that balance, no clearance for you.
Some CAs have figured out the loophole, now there are more and more doing it. Until someone actually busts them on it, they will continue to do it.
Starting Score: 504Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
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