Paying off Old Debt Vs. New Debt

[Anonymous]

I have only four collections (in medical) and would like to pay them off only if it's going to positively impact my credit score. What would be most efficient paying off older debt or newer debt? I hear that sometimes even after paying debt whether settled or paid in full will result in an outcome that will not improve my score. Also, if the debt collector does not allow removing the debt after paying, should I make monthly payments, would that build or help my credit score or should I pay it for the settled amount. Thank you in advance for your insight. 

[pizzadude]

The only way that you will get a FICO boost if is the collections are removed from your report.   You will want to negotiate a PFD ( pay for delete ) whereby the CA agrees to remove the collection in exchange for payment.      Just paying these collections won't help your FICO score.

[Anonymous]

Ok, thank you. Will talking with them and trying to negotiate this restart the clock of the 7 year deletion time? 

[pizzadude]

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@Anonymous wrote:

Ok, thank you. Will talking with them and trying to negotiate this restart the clock of the 7 year deletion time? 

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The credit reporting time period ( CRTP ) doesn't get reset regardless of whether you pay or not.   It is based on the Date of Final Deliquency ( DOFD ) of the debt.

I would recommend doing all communication with the CA in writing.   Also you should check your state's statue of limitations ( SOL ) for this debt to know where you stand if you were to be sued.   Also check your statutes on the resetting of SOL, in some cases an acknowledgement or partial payment might reset the SOL.

[Anonymous]

I live in California. Where could I go to get this information?

[pizzadude]

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@Anonymous wrote:

I live in California. Where could I go to get this information?

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You should be able to do a quick google search ~ try searching on "california statute of limitations on unpaid debt"