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Hello.
I've been busy rebuilding my formerly abysmal credit over the last 2+ years. I have quite a few cards now, some prime, and am square with the IRS and will be looking to purchase a condo in the next year or two, I think. It's nice to get approved for some decent cards now, and I'm basically putting all my spending and bills on cards that generate rewards. I PIF or pay 80% each month, depending on cash flow and expenses. My credit utilization is around 10%.
That's a little background.
I have two collections left on my report, one is a $700 medical collection, and the other is a collection for banking fees I accrued several years ago through stupidity. The collection agent is reputable and hasn't come after me, and I'm simply ready to pay it off (I'm not disputing it or trying to even get it removed from my reports at this point -- I just want it marked paid and to have it stop updating monthly).
The total amount is $1000. I paid a good faith payment of $100 today through my checking account. Is there a good reason not to put the rest on credit cards that would generate reward points (and help me pay it off slightly more quickly)?
Do credit card companies note that you're paying something to a collection agency on the card and frown on that? Would this affect their internal review of my card use and disqualify me for CLIs or even flag my account in some way? I have a couple cards I don't really care about or use any more (i opened them for rebuilding two years ago), so I could use those, but I wouldn't get reward points, and if I left any balance on those cards, I'd be paying interest (in which case, I might as well just pay it off over the next month or so anyway, with funds from my checking account). There is some relief I'd feel if I just paid the thing off entirely though, like today, knowing that my credit report would be updated that much sooner with the thing marked as paid.
Any knowledge out there? Advice?
@JayTee1 wrote:Hello.
I've been busy rebuilding my formerly abysmal credit over the last 2+ years. I have quite a few cards now, some prime, and am square with the IRS and will be looking to purchase a condo in the next year or two, I think. It's nice to get approved for some decent cards now, and I'm basically putting all my spending and bills on cards that generate rewards. I PIF or pay 80% each month, depending on cash flow and expenses. My credit utilization is around 10%.
That's a little background.
I have two collections left on my report, one is a $700 medical collection, and the other is a collection for banking fees I accrued several years ago through stupidity. The collection agent is reputable and hasn't come after me, and I'm simply ready to pay it off (I'm not disputing it or trying to even get it removed from my reports at this point -- I just want it marked paid and to have it stop updating monthly).
The total amount is $1000. I paid a good faith payment of $100 today through my checking account. Is there a good reason not to put the rest on credit cards that would generate reward points (and help me pay it off slightly more quickly)?
Do credit card companies note that you're paying something to a collection agency on the card and frown on that? Would this affect their internal review of my card use and disqualify me for CLIs or even flag my account in some way? I have a couple cards I don't really care about or use any more (i opened them for rebuilding two years ago), so I could use those, but I wouldn't get reward points, and if I left any balance on those cards, I'd be paying interest (in which case, I might as well just pay it off over the next month or so anyway, with funds from my checking account). There is some relief I'd feel if I just paid the thing off entirely though, like today, knowing that my credit report would be updated that much sooner with the thing marked as paid.
Any knowledge out there? Advice?
I've paid several items via my credit cards.
I'm currently rehabbing my US Dept Ed student loans and auto-pay the monthly payments on my QS for the cashback reward. I've been doing it since June of last year, and they keep raising my limits, pcing cards, consolidating, and just approved me for another card. So they must not care.
OK, sounds like it's not that dangerous to do. I'll only be doing it for these last two collections on my report. Thank you for the feeddback.