pFD or Decreasing Balances

[PayYouNever]

I received a Pay For Delete offer from a CA, which I didn't expect them to agree to.

I have the money ($300). However, I wondering how much will this removal impact my scores?

I do want to bring down my utilization.

I currently have 626 from Equifax, 575 from TransUnion, and I need to refinance a personal loan.

[Anonymous]

If i were you... i'd take the delete offer. it doesn't happen often. It'll increase your score but i dont know how much... 

[RobertEG]

If the account that created the debt is revolving and is also reporting, then it should reduce your % util.

The scoring impact would depend upon the amount of reduction in % util.

What is the % util before and after?

The impact on payment history scoring depends as much on what remains as in the removal of one derog.

If you still have major derogs reporting, the impact is not likely to be high.  You remain in a less-favorable scoring "bucket."

It is when the file becomes void of any major derogs that substantial scoring impact is usually seen.

Regardless of impact, I would take the pay for deletion offer.

PFDs wont hurt, and are hard to get.

[PayYouNever]

The account that created the debt is a medical account, so it won't reduce my utilization.

As for major derogs, yeah, I have a couple others (from 4+ years ago). Primarily a Federal Tax lien, but 80% of that is going away in the next 30 days.

I've been able to get a Capital One QuickSilver and Chase Slate card in the last 6 months even with the tax lien, but I want to FICO scoring as high as possible when I look to refinance.

The PFD account is extremely recent (May of this year), so getting rid of it cleans up my payment history to pretty much spotless in the last 3 years.

Okay, thanks!

[rmduhon]

Do the PFD. With it being so new and causing a clean payment history for 3 years if removed it'll have a bigger impact (relatively speaking) than if it was older.