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Okay this is atupid question but I need to know

Frequent Contributor

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!

 



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

Take the FICO Fitness Challenge

Message 1 of 11
10 REPLIES
Established Contributor

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: EQ: 383 2/2011
Current Score: TU: 644 EQ: 648 EX: 6?? 2/2015
Goal Score: 700


Take the FICO Fitness Challenge
Message 2 of 11
Frequent Contributor

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

I just wish they would tell me either way.



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

Take the FICO Fitness Challenge

Message 3 of 11
Moderator Emeritus

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.

Starting Score: 504
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.
Message 4 of 11
Frequent Contributor

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

Take the FICO Fitness Challenge

Message 5 of 11
Established Contributor

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: EQ: 383 2/2011
Current Score: TU: 644 EQ: 648 EX: 6?? 2/2015
Goal Score: 700


Take the FICO Fitness Challenge
Message 6 of 11
Frequent Contributor

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

Take the FICO Fitness Challenge

Message 7 of 11
Valued Contributor

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?


Starting Score: EQ 653 6/21/12
Current Score: EQ 703 8/5/17 - EX 743 8/5/17 - TU 731 8/5/17
Message 8 of 11
Valued Member

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.

Message 9 of 11
Established Contributor

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.

 

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
Message 10 of 11