cancel
Showing results for 
Search instead for 
Did you mean: 

Please help! Collections..

tag
Anonymous
Not applicable

Please help! Collections..

So here is my current situation in the rebuilding process..

 

I currently have 3x accounts in collections, 2 of which are to fall off early 2016. The one in question is not due to fall off til 2018, which is a ways away.

 

I just called Fidelity CA and they advised that I can pay in full for a complete deletion off my reports. Sounds so tempting, but I have a question..

 

If I do in fact pay this in full and it completely wipes off my report, would this positively affect my score in any way? Or would I still be screwed because the other 2 baddies offset this one which will disappear? For instance, if I have 3 accounts in collections and now i have 2, is that any better than having 1 or 5? Would I see a hike in my score at all from having 1 out of 3 removed?

 

 

Total amount due is like $1200 so I want to make sure this is what I should be doing..

 

Thank you in advance!!!!

Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Please help! Collections..

If you can Pay to get it deleted do it. Cleaner report is ALWAYS better, regardless of score impact.

Message 2 of 8
lkodysz
New Member

Re: Please help! Collections..

Pay for delete is great, but make sure you get it in writing Smiley Happy

Message 3 of 8
Anonymous
Not applicable

Re: Please help! Collections..

Given there's a whole heap of things to take into account with score differences, a pay for delete was the difference between a 545 and a 615 on my score. However, I'm not entirely sure what your jump would look like with other collections also on record. 

 

But absolute fact, better to have a clean history if possible. Like it "never happened."

 

On another note, I know it varies from state to state, but it's my understanding that although the statute of limitations may pass, a collection can still stay on your report for up to seven years. So keep in mind... They may stop chasing you but it could still reflect for a few more years to come.

Message 4 of 8
Anonymous
Not applicable

Re: Please help! Collections..

You may see little to no improvement immediately, but when early 2016 comes around and the other two collections fall-off, you'll be in great shape. And in the meantime, by paying that collection, its TL will stop updating. Even if it's not updating now, it could start at any time. Another reason to it settle now.

 

Many CAs won't put PFD in writing, but generally a verbal assurance is sufficient, and will follow-through.

Message 5 of 8
Anonymous
Not applicable

Re: Please help! Collections..

Yeah $1200 is a lot of money so I understand your consern.

 

Here is the deal. No one can really guess what your increase will be with the one collection if you pay for the trade line deletion. It will probably increase your score. But considering the other two collections, not by alot.

 

Ask yourself, How long do I want to live with this? If the answer is by 2016 I want to have a good score. Then pay for the deletion. Let the other two collections fall off. Then your score will be significantly higher, barring any other issues, such as 30 days late or more on other trade lines by 2016.

 

If the answer is by 2018, I don't intend on applying for any significant loans, like a car or mortgage. Then don't worry about it. Let it reach it's time limit and fall off. Which means you really won't have a great score till that happens. Cheaper method.

 

Message 6 of 8
Anonymous
Not applicable

Re: Please help! Collections..

Do it asap . Don't stress the score at all . Your report would be completely clean in 2016 instead of 2018 .
Message 7 of 8
Anonymous
Not applicable

Re: Please help! Collections..

Last year I took at 13-15 pt jump going from 3 to 2, but as others have mentioned you should take that with a grain of salt. Every profile is different. The much bigger jump came in going from 2 to 0, of course.

 

If you can do it comfortably without putting any other credit factors in jeopardy (like your util or payment history on other accounts) of course pfd is the best way to clean up the item for good and keep it from biting you again. Since it always bears repeating, get the agreement in writing. 

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.