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Paid and unpaid hurts the same, pay them and then send off a GW letter or just do a PFD to begin with.
Good luck!
Does the HIPAA process still work if you have already paid the CA?
As to whether it would hurt your score to pay depends on when the CA last reported. If they are reporting monthly or at least recently, then paying it should not affect your score. If they haven't reported in a while, your score will drop once the CA updates your account to paid.
Remember, even if your score drops from paying the CA... a manual review will be done in the mortgage process and it looks much better to have paid them. GOOD LUCK!!
Thanks for the clarification everyone. Was trying to avoid doing the HIPPAA thing because it seems like a royal pain. Most of her collections are in the 1 to 2 year old range that update regularly.
@Brandon1972 wrote:Thanks for the clarification everyone. Was trying to avoid doing the HIPPAA thing because it seems like a royal pain. Most of her collections are in the 1 to 2 year old range that update regularly.
Idk how HIPPA works, but if nothing else, I would pay them soon. Once paid, the CA's will stop updating, which will give your scores time to increase in a year and you won't have to worry about dealing with them later. You definitely don't wanna wait til the last minute.
Hippa is not to be discussed on the forum
Thanks
MJ
Most mortage app processes will ask for disclosure of any unpaid, delinquent debt.
Even if the collection were past its credit report exclusion date, they most likely would not need to see a collection in your CR in order to be aware of the unpaid, delinquent debt.
There is no question that showing satisfaction of the debt will look better on any manual review if the collection is still in your CR. FICO scoring is not the only issue.
With a year to go before apping, I would pursue a PFD offer, which would obtain both satisfacton of the debt, and thus remove any issue of an unpaid debt in your future app process, and additonally remove the collection from scoring.
If you cannot get PFD acceptance, then payment would still provide the beneficial removal of a unpaid, delinquent debt.