Should I PAY -OR- Wait??......

[theREBIRTHofCREDIT]

Ok, I have a debt with Merrick and I owe $2261 .... They have sent me a settlement offer for $1243

History:

Date Opened: Nov 2007

Status Date: Sept 2012

Condition: Closed

Last Activity: July 2010

CHARGE OFF

I am trying to fix my credit in hopes of ONE DAY (sooner than later) to qualify for a Mortgage

QUESTION(S)

(1) Should I accept their offer of $1243 so that THIS matter can be taken care of?

(2) Should I attempt PFD? <--- Has ANYONE had success with Merrick & PFD?

(3) Will Paying this off potentially DROP MY SCORE?? If so, will the drop be temporary or permanent?

(4) Will Paying this change my score in ANY way Positively?

Any OTHER suggestions will be GREATLY appreciated (THANKS IN ADVANCE!!)

[Whitneyy]

I mean you could PFD them with their settlement, that'll jump your score up big time.

[gdale6]

As far as score drop, yes payment could drop it as it will be reported as paid with current date as status, FICO usually picks it up as having just occured. Personally the only reason to settle and even ask for a PFD which I dont think Merrick does would be to purchase a house ADDING: (With mortgage). Once this passes your states SOL you will probably be able to make a better deal with them as they would not be able to sue you to recover the full amount.

[theREBIRTHofCREDIT]

gdale6 (or anyone)

If FICO picks it up as just having occurred HOW LONG will that effect the score? Or will the drop last for a long while?

Also, I'm in Ohio & I believe my SOL is 15yrs ... with that being said, I think I have a long ways to go for SOL

ALSO, YES! My goal is to apply for a mortgage ... So with Home Mortgage in mind what do you all think is the best route???????

THANKS!!

[guiness56]

The only time it should drop your score is if the account has not been updated monthly.  Does Merrick report each month?  If they do paying it should not hurt your score and may help if it is a CC.

ETA:  I see it was last updated Sep 2012 so yes it would probably drop your score.

Changes are the LO is going to make you pay it anyway.

[theREBIRTHofCREDIT]

guiness56 (or anyone)

Last Activity: July 2010
Last Status: Sept 2012

So, correct me if I'm wrong but July 2010 is when I made last payment & Sept 2012 is when they Last updated info on the acct.

With that being said it's been 17 months since they've updated ... Correct??

So, I'm guessing paying will drop my score ???

[Shogun]

Unfortunately, yes.  It could cause a drop in score.  If something hasn't been updated in awhile and suddenly does, FICO scores it with more severity because of the recent reporting.  I know,, I don't like it either.

But if they update at any time or sell it off and a new CA reports it, you'll get the same result.  

[theREBIRTHofCREDIT]

Shogun (or anyone)

So, I'm thinking I should just accept the offer and take the initial hit in score ... That way I won't have to worry about it being an unpaid collection any longer ...

I'm trying to fix my credit so that I can potentially qualify for a home mortgage This Year, ... They'll prob want it paid off anyway,

Correct???

[Shogun]

Yes. Many lenders will require you to pay it anyway.  If you pay it now, it's done and gone.  Then you can GW it.

[sparker256]

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@Shogun wrote:

Yes. Many lenders will require you to pay it anyway.  If you pay it now, it's done and gone.  Then you can GW it.

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+1.

If you wanted to try a PFD on terms of there offer you could try that but risk them pulling the offer off the table.

Probably best to just pay and GW them.

Good Luck! And let us know what you decide to do