New Ding...When should I pay it.

[kmksga]

I had automatic payments on my home phone bill.  When I turned off service last year to move out of state I ended up with a refund check from the phone company.  I had payments deducted as late as the month after I disconnected service.

Today I got a ding on my report for unpaid amount.  When I called they said the refund was for the internet and that once I closed the account the auto pay stopped.  I never received any billing.  The only closing info I got was the check.

I don't really think it's worth the fight...in the end I will have to pay it.  My question is:

***If the ding just showed up today and I pay it today how much damage will it do to my credit score  vs not paying it for a while ???

Any advice is appreciated....I am fuming...part of me just doesn't want to pay it....kind of a spite thing...I know I owe it I just don't like how it was handled !!!

[rckstrscott]

How is the ding reported? Is it listed as a late payment on and open trade line or a collection account?

If it is a collection account, the only way it won't hurt is to have it removed. If you pay it, it will still report and count the same in the FICO model.

[GoodCredBen]

If i was you, i would start with sending debt validation letters...

If you dont pay it now compared waiting to pay it in say 10 months, you wont see much of a difference if any.

In addition to that, if they come back and its validated, i would then start sending them PFD letters...

Getting them to agree to delete it with payment

Send all mail Certified mail read receipt requested.

[llecs]

FICO-wise, there's no difference if you pay it off now or not pay it. Whether the OC or CA is reporting, $0 balance charge-offs or CAs are equally as damaging as one with a balance.  ETA...that's not an endorsement not to pay. I personally would pay it via a PFD attempt or pay it outright if a PFD fails.

[kmksga]

It says Unpaid....and it is with a collection company.

[kmksga]

I don't dispute that I should pay it and I'm the type that will pay it....just annoyed how it was done...I like the feedback...I appears I have the time to really pursue it before I hand them the money because the damage is already done.

Thanks for all the feedback...made me feel better !!!!