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Stupid Question??

Frequent Contributor

Stupid Question??

I have three collection accounts that are fairly old, about 5 years or more.  Two are medical debt for $130 and $340.  One is a utility bill for $315.  My question is this-- if I pay these off but can't get a PFD, will it help or hurt me?  I pretty sure I can get PFDs on the medical bills, otherwise they are shortly out of luck with getting anything.  But the utility bill is another story.  Will paying help me or hurt me in the short run?

 


Starting Score: 597
Current Score: TU 720 EQ 648
Goal Score: 750


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11 REPLIES
Senior Contributor

Re: Stupid Question??


justrock wrote:

I have three collection accounts that are fairly old, about 5 years or more.  Two are medical debt for $130 and $340.  One is a utility bill for $315.  My question is this-- if I pay these off but can't get a PFD, will it help or hurt me?  I pretty sure I can get PFDs on the medical bills, otherwise they are shortly out of luck with getting anything.  But the utility bill is another story.  Will paying help me or hurt me in the short run?

 


Hi justrock, there is never a stupid question to ask. If paid it will look good on a manual review of your credit reports. You can always PIF then good will them afterwards.

Epic Contributor

Re: Stupid Question??

No, paying a collection will not help your score.  If the creditor has not been reporting for a while it could actually hurt your score by updating to a current date.

Frequent Contributor

Re: Stupid Question??

That is why I am confused. I'm afraid paying will actually hurt me.....

Starting Score: 597
Current Score: TU 720 EQ 648
Goal Score: 750


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Epic Contributor

Re: Stupid Question??

Is the collection account in the collection section and does it update monthly?

Frequent Contributor

Re: Stupid Question??

I'm not sure if it updates. I've only just pulled my credit reports for the first time in years. How can I tell?

Starting Score: 597
Current Score: TU 720 EQ 648
Goal Score: 750


Take the myFICO Fitness Challenge
Epic Contributor

Re: Stupid Question??

Every month the date reported will change if they update monthly.  If they don't it will be a past date.

Frequent Contributor

Re: Stupid Question??

They all have "date reported" in the last few months so they are updating.   Which direction does this tell me to go?


Starting Score: 597
Current Score: TU 720 EQ 648
Goal Score: 750


Take the myFICO Fitness Challenge
Epic Contributor

Re: Stupid Question??

Personally, I would pay it then start sending GWs for deletion.  Debt free.

Moderator Emeritus

Re: Stupid Question??

+1 guiness

 

I'd try a round or 2 of PFDs and if no success, I'd pay and then GW.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.