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I have two collections accounts that are medical related. They are both from the same collections agency as well as reported/opened on the same dates.
The first one for $95 was reported on 01/2013 and last opened on 09/2012.
The second one is for $504 and was reported on 01/2013 and last opened on 09/2012.
I need to get these off of my credit. I am in the middle of trying to buy a house and I am wondering if paying the collections off, will lower my score any. I have heard that paying off a credit card completely can sometimes lower your score and my mortgage loan officer is saying that collections can do the same thing. Can anyone give me some insight?
Thanks.
Edit:
Also, I did speak with the collections agency (HOLLIS COBB) and they said once I pay it, it will come off my credit report.
Paying a collection should have no impact on your score one way or the other. But, I have seen it go both ways. Since it was just reported 1/2013 I don't think it will drop your score.
You can contact the CA and ask for a Pay for Delete. You pay, they delete the TL.
Or you can contact the OC and ask to pay them and recall the debt from the CA and have them remove their TL. They may or may not.
Yes, having all of your CC report a 0 balance could cause your score to lower. It is best to let all but one report a 0 balance and the other at 9% or below. FICO likes to see you use your credit but wisley.
Welcome to the forums.
If they said they will remove once paid then try to get it in writing. If not it is up to you to trust them. Most stand by their word.
Getting those removed your score should go up.