Verizon

[HopeThruFaith]

So I just got off the phone with Verizon. They refuse to PFD but offered a settlement. The balance is $1229 but they are willing to update my credit report as paid in full for $614. The DOFD 1/1/2008 is and not due to drop off until 2015. Will it help or hinder by score by paying it? Will an FHA mortgage require that it be paid. It does look like its updating past due every month, so I figured paying it could help ...will it?

[digginout2013]

Just make sure you get it in writing before paying because if they report "Legally paid in full for less than the full balance" or "Settled for less than the full balance" then it could hurt your FICO. You will want to agree to a "Paid satisfactorily" or "Paid as Agreed".

GET IT IN WRITING PRIOR TO PAYING THEM!

Good luck man!

[DaveSignal]

Verizon is reporting as a collection correct? I think your score will be the same whether the account is paid or not.  But paying it, settled or not, will help you on a manual review.  It always looks better to lenders that you don't have current unpaid debts.

[HopeThruFaith]

Yeah, it's listed under collections, account status closed, past due balance $1229. Equifax shows OK's on the past 24 month payment history but under the listing it says at least 120 days or more than four payments past due...dunno what that means. Experian is showing KD for the past 24 month payment hx and Transinion isn't reporting anything. I know I'll need to pay for underwriting and I'm ok with my score not increasing...I just don't want it to decrease.

[DaveSignal]

The collection is hurting your score.  Paying it should not have any effect on your score.   You could try asking for a PFD.  If that doesn't work, you could try sending GW letters after it is paid.  That might not work either.  Regardless, creditors are unlikely to offer you future loans if you have unpaid collections.  If you can negotiate a smaller balance, I would take it.  Just get it to show $0 owed.