Will it hurt score if I pay a small payment?

[Anonymous]

My fiancé has a few collections (old medicos bills). They haven't updated in a while. If I start making payments toward it, will the CA updating to CRA cause a drop in score?

[Anonymous]

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@Anonymous wrote:
My fiancé has a few collections (old medicos bills). They haven't updated in a while. If I start making payments toward it, will the CA updating to CRA cause a drop in score?

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Define "awhile"....

[Anonymous]

CA hasn't updated side Aug 2015

[Anonymous]

In this case yes, you would possibly see a score drop.  Especially if you start making payments and then for whatever reason you have to stop, since at that point the CA will re-report the remaining balance, making it a brand new collection again.

My advice is to make the small payments to a savings account, and once you have the full balance in there pay it off completely so it does not have a chance to re-age

[Anonymous]

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@Anonymous wrote:

In this case yes, you would possibly see a score drop.  Especially if you start making payments and then for whatever reason you have to stop, since at that point the CA will re-report the remaining balance, making it a brand new collection again.

My advice is to make the small payments to a savings account, and once you have the full balance in there pay it off completely so it does not have a chance to re-age

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+1

You'll also have the savings on hand to offer as a settlement if they threaten to sue.

[Anonymous]

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@Anonymous wrote:
CA hasn't updated side Aug 2015

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Less than one year old you might see a slight (or no) change - two years or more would be bigger...