How to pay collections?

[ChangeIsPossible]

If you have multiple collection accounts you are settling, is it best to pay off slowly or is in one lump sum ok?

I have five or so accounts I am paying off which I know will overall help my score because they are from old credit cards which kills the utilization ratio I now have!

The totals are about 5500$ that was charged off and I now have two new secured cards that have 1000$ in total limit! Once balances were paid I planned on increasing limit on my NFCU Secured from 500 to 1500$

[guiness56]

Are they with the OC or the CA?  That will make a difference.

[ChangeIsPossible]

Two are with OC being collected on behalf of creditor, two are with CA and the other is an old utility bill

[guiness56]

If the OC is showing a balance, faster they are paid down the better for a faster raise in your score.

With that said, even if you pay in payments, your score will still go up after the balance is 0.

[deaf]

Hopefully you don't mind me asking a stupid question. What exactly is a OC and CA?

[guiness56]

OC - Original Creditor

CA - Collection Agency

Not a stupid question.

Look in my signature for Common Abbreviations.  Unfortunately, we rely heavily on acronyms.

[ChangeIsPossible]

I'm looking forward to the score bump. I guess the SOL is either quickly approaching in CT or CA's are calling eachother because after I payed one I received calls in droves from the others.

I planned on paying everything off by March, but I am paying them sooner than I like (I'm about to vacation to Europe) so it's cutting into what I put aside to have, but grateful that when I come back now, my credit will be in a much better place!

[ptilda]

Do you have PFD agreements? Might want to see if you can navagate some agreements to get these off your report alltogether... I might be stating the obvious