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Frequent Contributor
LoveGoodCredit
Posts: 342
Registered: ‎07-06-2012
0

Okay this is atupid question but I need to know

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!

 



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sphinx313
Posts: 567
Registered: ‎02-12-2011
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Re: Okay this is atupid question but I need to know

Short answer: No. Paying a CA does nothing for your score. It can and will help in manual reviews, though.



Starting Score: 532/564 10/21/12
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LoveGoodCredit
Posts: 342
Registered: ‎07-06-2012
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Re: Okay this is atupid question but I need to know

I just wish they would tell me either way.



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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Okay this is atupid question but I need to know

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.


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Frequent Contributor
LoveGoodCredit
Posts: 342
Registered: ‎07-06-2012
0

Re: Okay this is atupid question but I need to know

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.



Starting Score:
August Equifax 558 TU 600 EX 570
Current Score: Equifax FICO 642 TU FICO662 EX 651 (credit.com) 06/21/2013
Goal Score: 720 All Across

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Established Contributor
sphinx313
Posts: 567
Registered: ‎02-12-2011
0

Re: Okay this is atupid question but I need to know

I probably wouldn't pay the entire amount either. Try to negotiate a discount since you're going to cave and pay it anyway.


Starting Score: 532/564 10/21/12
Current Score: TU: 594 EQ: 628 EX: 617 BoA Credit Pull Denial Letter 2/20/2013
Goal Score: 700


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Frequent Contributor
LoveGoodCredit
Posts: 342
Registered: ‎07-06-2012
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Re: Okay this is atupid question but I need to know

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.



Starting Score:
August Equifax 558 TU 600 EX 570
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Goal Score: 720 All Across

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Established Contributor
jamie123
Posts: 814
Registered: ‎03-22-2012
0

Re: Okay this is atupid question but I need to know

Don't pay it LovesGoodCredit!

 

It will do ABSOLUTELY nothing for your scores! Keep trying to get a response from them. Have you talked to anyone about this?

 

Don't pay it until the month before you apply for your mortgage if you can't cut a deal with them before that. You will only need to have it paid when your lender does the manual review for your mortgage.

 

The lender will be questioning you about it then. What are you going to tell them? "I was too lazy to hunt them down and have it removed when I paid it!"

 

C'mon LovesGoodCredit! You are better than that! Find that lender and go poke'em in the eye!

 

Having these last collections removed is important. What are your scores like nowadays anyways?



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Valued Member
shoppingsenior
Posts: 30
Registered: ‎06-06-2007
0

Re: Okay this is atupid question but I need to know

LovesGoodCredit I would try to do a PFD! That will help with raising your score.

Established Contributor
awdsmama
Posts: 755
Registered: ‎01-20-2012
0

Re: Okay this is atupid question but I need to know

Nope.  I paid off 3 on the same day, all have updated to my CRs and no point changes at all.

 

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