Quick questions about collection accounts paid vs unpaid???

[ssdc1980]

Today I took the first steps towards purchasing my first home by meeting with a potential mortgage lender. My scores were 678, 679 and 681. The nice woman I met with informed me that while my scores/history/DTI are good enough to qualify for a loan, they are not quite good enough for prime rates and multiple loan types.

I have 3 small unpaid collection accounts on my reports that range in age from 4 to 6 years and total A little under $700. She told me that by paying these accounts off my scores would see a dramatic increase over the next 3 months (into the 730's as she put it)

Over the past couple years I have read more than a few post here that say a paid collection vs a unpaid collection have essentially the same impact on your credit score. So my question is, if I pay these off will I see this dramatic increase she mentioned?

Even though 2 of these Collections are in dispute I DO but don't mind paying them if it will help me obtain better financing.

thanks everybody for any advice you can throw my way.

[itswink]

Why not try to negotiate  a PFD instead of just paying them?

[growing123]

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@ssdc1980 wrote:

Today I took the first steps towards purchasing my first home by meeting with a potential mortgage lender. My scores were 678, 679 and 681. The nice woman I met with informed me that while my scores/history/DTI are good enough to qualify for a loan, they are not quite good enough for prime rates and multiple loan types.

I have 3 small unpaid collection accounts on my reports that range in age from 4 to 6 years and total A little under $700. She told me that by paying these accounts off my scores would see a dramatic increase over the next 3 months (into the 730's as she put it)

Over the past couple years I have read more than a few post here that say a paid collection vs a unpaid collection have essentially the same impact on your credit score. So my question is, if I pay these off will I see this dramatic increase she mentioned?

Even though 2 of these Collections are in dispute I DO but don't mind paying them if it will help me obtain better financing.

thanks everybody for any advice you can throw my way.

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If these collections have been updating monthly, then yes, you will probably see your scores improve because they will stop updating and start aging. 

As mentioned, getting a PFD is best, but if they won't go for that then I would pay and then start sending GW requests to them.  You might want to search the forum to see if anyone has had luck with the CA on your report.  Good luck!

[ssdc1980]

I've had dealings with this collection company in the past and have never been able to get them to PFD. So be it, I'll head over there tomorrow and settle up I guess.  Thanks for the help.