Should I settle

[preciousjoys]

I have a collection agency (SST) listed on all 3 credit reports as revolving accts, but in comments collections.  Neither is factoring as a collection, but as a revolving.  On equifax they are listed as 120 days late (I'm not sure how considering they are a collection agency).  Well the debt owed is 1936.00. I can settle to day for 988.00, but how will this affect my credit scores? Should I just sit it out and pay in full? Or should I set up a payment plan?

[Bcunniff9]

Search the forum for PFD (Pay for Delete) letters. You pay, they delete from your reports

[guiness56]

---

@preciousjoys wrote:

I have a collection agency (SST) listed on all 3 credit reports as revolving accts, but in comments collections.  Neither is factoring as a collection, but as a revolving.  On equifax they are listed as 120 days late (I'm not sure how considering they are a collection agency).  Well the debt owed is 1936.00. I can settle to day for 988.00, but how will this affect my credit scores? Should I just sit it out and pay in full? Or should I set up a payment plan?

---

If you have an account that has the word collection in it anywhere, FICO sees it as a collection and you are dinged accordingly. 

CAs cannot post their own payment history but can report what the OC reported to them.  If you were 120 days late when they received the account, they can report that.  These lates are not factored into your score.  FICO dings you for the worst delinquency, which is the collection.

Paying or settling will have no impact on your score.  Settling may not cause a score drop but will be looked at in a more negative way.  Setlling for less than full amount is not a good thing.

What is the DoFD of the account and your state's SOL?

[preciousjoys]

The DoFD is 6/07 with SST/Columbust bank and trust formerly Providian.

The date the SST/Coumbus bank was opened was 1/2006

The date collection acct SST/CIGPF1 was opened was 1/2006

Also NCO is collection for the collection agency SST/CIGPF1 and are not reporting on the CR.

How can they have the same open date?

My fico is still not dinging it as a collection.  It is being included in my revolving utilization, which a charge off for an OC creditor can be, but not for a CA.

Also, they will not do a PFD.

[guiness56]

The open dates make no difference what so ever in your FICO score.  They are not important dates.

If it is a collection agency reporting, you can bet FICO is dinging it as a collection.  If the OC is also reporting then you will get dinged for the CO and the utilization.