I'm so close! 1 baddie left! To pay or not to pay?

[myscorerocks]

I've been working on my credit for the past few years and I'm happy to say I only have 1 baddie left. Sadly, I have 5 years to go for this baddie to be removed. A tuition bill got reported before I could pay. I have tried to PFD, but they're not budging. Perhaps I'll try in Jan after they've had the debt for a year. I don't have any big purchases now, but I would like to buy a house in 2-3 years. I'll let my accounts age, reduce my debt, let my inquiries drop off, and work on getting this baddie gone. 

It's frustrating because I realize how much it affects my score to have even 1 baddie. I started with 19, so I've come a long way! Rehabbing my student loan, adding numerous credit cards, cleaning up my reports, and I'm still sitting in the 600's. My util is high right now, but I plan to pay off in the next 6 months. I see how much utilization affects my score! 

Question... does it make a huge difference if I pay now or later? If they refuse to move, does a PIF go back to the date the collection went on my account or the date I PIF? Frankly, I want to hold out to get them to remove altogether. Thoughts?

[Anonymous]

I would say contact the original creditor in this case and try to arrange something with them.

You don't have much leverage in terms of getting it settled for less or getting a PFD, if it was out of SOL that's a completely different ball game.

If you don't plan on app'ing for anything big in the next 6 months or so I'd let it be and let it age maybe in time they'll reconsider or you'll work something out with OC.

I'm guessing that because you're still in the 600's you have a good amount of negative payment history showing? I'd work on getting positive trade lines going and reporting under 10%. I'm at about 650 with 4 baddies on my report but a lot of positive trade lines. The UT is definitely dragging you down and paying it off will have little, if any, effect on your FICO 8 score it will have a greater effect on a FICO 9 score but almost no lenders use this, and a PFD would obviously be the best option.

[myscorerocks]

I forgot to mention I just got 1-2 baddies off, but I don't think they have all updated. I'm at 640 on Transunion before the update. Some good things aren't reporting to all 3 and because they're closed, I can't do anything about it now. So, as it stands, I have only 1 negative on my report, with the exception of positive tradelines with high utils. I suspect that the points gained with the last 1-2 baddies removed equaled the high utils just now reporting. 

I have contacted the original creditor months ago and they were unwilling to help me other than to allow me to pay in full. I have time, so I'll wait. Just sucks. It would be nice to get higher limits with all baddies gone. I also tried to contact the OC and they wouldn't help either. You would think they would be a little more reasonable than a credit card company.

[Anonymous]

You said:

"I have contacted the original creditor months ago and they were unwilling to help me other than to allow me to pay in full."

If you pay the original creditor in full they'll have to withdraw the collections activity which will then in turn cause it to be removed from your credit report.

[rmduhon]

Paying the OC for the bill BEFORE the collection authority is removed will not cause the collection to be removed from the credit report, just updated to paid with a zero balance.

[cjane1]

What collection agency are you dealing with?

[myscorerocks]

Conserve. And, paying in full does not remove the account. If only they all did that.