To pay or not to pay, that is the question?

[Anonymous]

So I am looking to buy a house this summer/fall. I have a collection account from Stevens business services for $862. I still have not paid it and the last time it was reported was January 2014. I am worried about the effect on my credit score if will have if I pay it and they won't do a PFD. But then again I also worry that if I don't pay it, it may suddenly report again and will tank my credit score. If I pay it and they aren't willing to do a PFD, how much do you think it will affect my credit score??

[Anonymous]

Do they own the debt or are they just collecting for someone else?  If they are collecting for someone else have you tried reaching out to the original creditor?  

[Anonymous]

I believe they now own the debt. It's a gas bill from 2013. I have not reached out to the OC.

[RobertEG]

It is not all simply about a three-digit credit score.

Once credit report exclusion of the collection occurs, it then becomes more difficult for others to become aware of the unpaid debt by simply pulling your credit report and seeing an unpaid collection.

A potential creditor, particularly when it involves a mortgage, may request disclosure of all unpaid, delinquent debt, and require payment as a pre-condtion to approval of a mortgage loan.  It is still beneficial to settle the debt, and once credit report exclusion occurs, they may settle for substantially less.