Does paying off a collection raise your score? NOT by just decreasing your debt, I mean does it actually do anything for your score? I am getting tired of CSD which is 156 but the keep ignoring all my attempts!
Short answer: No. Paying a CA does nothing for your score. It can and will help in manual reviews, though.
I just wish they would tell me either way.
No, by simply paying the bill, it will take the balance down to 0. It does not remove the fact that it was a negative status and will continue to report as much. Now there is a reason that it might go up, if it was the CO reporting, and there was a balance reporting, then your util was getting hit with that amount, so paying the balance would decrease your util and you might see a bump. Also, like mentioned above, if a manual review is done, then the UW could see that the debt was satisfied and might help in their decision.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Thanks Shogun. I am wondering how long I should continue trying before giving up and just paying it. Its only 156.00 but I cannot get ahold of them.
I probably wouldn't pay the entire amount either. Try to negotiate a discount since you're going to cave and pay it anyway.
I just opened a complaint with the BBB only because I have in TOTAL written them 9 letters and they have ignored every one. If they dont want to do that they can just tell me and I will pay it. We'll see if I can get a response now. I hate to play hardball but I need to get this house before my mom gets too sick to enjoy anything and stop worrying about me if she goes to be with the lord.
