paid collection questions

Anonymous · ‎05-21-2015

Ok so I'm in the process of trying to remove a collection account on experian and the collection agency is not willing to do a pay to delete what so ever even when im offering to pay the balance in full. So it seems my only option now is just to pay it in full and they will update it as a "paid collection". My question is will that lower my score if I paid it off??? I'm confused and don't want my score to drop by paying it off. I know I won't see an increase of the score but I also don't wanna see it drop. My current ex score is 670 because this collection

MarineVietVet · ‎05-21-2015

@Anonymous wrote:
Ok so I'm in the process of trying to remove a collection account on experian and the collection agency is not willing to do a pay to delete what so ever even when im offering to pay the balance in full. So it seems my only option now is just to pay it in full and they will update it as a "paid collection". My question is will that lower my score if I paid it off??? I'm confused and don't want my score to drop by paying it off. I know I won't see an increase of the score but I also don't wanna see it drop. My current ex score is 670 because this collection

Hello and welcome.

Collections are scored the same whether paid or unpaid unfortunately.

So their offer to report it as "Paid Collection" will nether hurt nor help your scores.

However paying this off will stop all future collection efforts and that can be a motivating factor for some people.

Anonymous · ‎05-22-2015

you may have a better chance to have the TL removed if it's paid off. I have had 2 COL's removed in the following manner:

1) CA would not agree to PFD over the phone but once I paid off the acount I received a letter from the CA's that they sent a deletion letter to all 3 CRA's

2) CA categorically refused a PFD but 30 days after I paid off the account I GW'd them and they deleted that TL from all 3 CRA's as well

best of luck!

Anonymous · ‎05-22-2015

Hello, i appreciate the reply. im hoping that is the case but iv been reading on other forums of people saying don't pay collections because it drops your score significantly because it updates and makes the collection fresh again? dont know how much water that holds but i certainly hope that isnt the case. the collection agency is located in my home state of Arizona and they said i can come down in person and pay cash and they will give me a paid in full letter right there on the spot. do you think i would have better luck negotiating with them in person to have them completely remove it? they also said its against their policy to remove collections from the reports because of the contract they have with experian

Anonymous · ‎05-22-2015

@Anonymous wrote:
Hello, i appreciate the reply. im hoping that is the case but iv been reading on other forums of people saying don't pay collections because it drops your score significantly because it updates and makes the collection fresh again? dont know how much water that holds but i certainly hope that isnt the case. the collection agency is located in my home state of Arizona and they said i can come down in person and pay cash and they will give me a paid in full letter right there on the spot. do you think i would have better luck negotiating with them in person to have them completely remove it? they also said its against their policy to remove collections from the reports because of the contract they have with experian

If its already being updated monthly then its doing the maximum damage to your scores and it will not do any additional damage by paying. If its not been updates for several years, then when it updates you will get a score drop, but you scores will recover as the item ages. Paying will not change the drop off date.

Anonymous · ‎05-22-2015

the collection was put on my record about 10 months ago but the account was from late 2010 the original balance was $1550 and they updated it last month for the first time to $1602 (intrest) so in my case by paying it couldnt hurt my score anymore? thanks in advance for the advice from everyone im new to all this

Anonymous · ‎05-22-2015

oh and i forgot to mention they also are willing to settle for 80% of the debt and will update it as "settled in full" i have no idea what to do lol

Anonymous · ‎05-22-2015

I don't know much about collections but I would be skeptical of the term "settled in full" if they are trying to imply you paid in full then what would be the purpose of the term "settled" Very odd. Can you not contact the original creditor to see if they will recall the debt so that you can pay them? You really should just pay it in full. Who was the debt with originally?

Anonymous · ‎05-22-2015

i already contacted the original creditor and they said all negotiations must be done through the collection agency. the collections is from a broken lease from an apartment complex (they Realtor company and collection agency partner together they are both local in my state) i plan to pay it in full rather than settle because apparently it looks better than settled but who knows?

Anonymous · ‎05-22-2015

Settled in full may pose more of an issue to future lenders than it will to your score. It shows that you didn't pay that particular debt in full which means they can expect the very same might happen to them...However, it does render the account satisfied in the eyes of the collection agency which means no more call, letters or the possibility of being sued over the balance.