Collection account payment, FICO score impact **Update

[Anonymous]

Hello all, 

i've posted a few times on here but still quite new to this.  So I have 1 final collections account that I still owe money on it's showing on my credit report at $6,550 i've been working with the creditor (Dominican University) to make this balance reflect a correct amount as I was being charged for a semester I didn't attend.  Today I got a call from the collections company they are using to collect on the debt that my balance was updated to reflect a balance owed for $4070 and change.  I said awesome i'm not committing to paying anything until I actually speak with someone at the school to verifiy what this charge is for.  

So my question is I'm going to pay this collection and prior to agreeing to pay i'm going to ask for a PFD.  Seperate from this I have two collections account both have been paid to zero, unfortinately prior to me knowing that we can leverage a pay to delete.  The only other negatives are like 2 trendlines that are roughly from 2009-2010 for student loans that defalted and i've actually already paid.  I've been trying to dispute a Chase student Loan as the original trendline started 09/2007 but can't seem to have success online.  

My current scores according to my fico 628, 619, 640 I have roughly 12 accounts now with 11,000 credit limit and 1450 owed among two cards.  Will me paying this debt actually help my scores?  I can't find a simulator that seems to accurate dipict what would happen.  My Fico doesn't account for removal of collection account, Credit.com doesn't change and then credit karma boost my TU score to 669 they show 611 currently instead of the 628 My Fico does.  Collection account is from 2010 so i'm closer to the end of statue of limitations than I am to the start.  Financially the only purchase i'm looking to do is a home and we have already been pre approved just not for the amount we wanted, here is to hoping that an extra 4 months makes a differance and they recommend i add another trendline which I did end up adding two (Slate and Freedom) currently not on credit report.  

My Fico scores closely reflect what the mortgage company pulled in October, thought it might be mindful information.  I've also submitted disuputes with transunion and equifax for accounts that I successfully disputed with experien and got removed.  Prior to myfico i paid free credit score and only got experien for 10 dollars a month figured 10 dollars more for three months will help me optimze my scores when we reapp in february.  

I know this can go here and in rebuilding credit but this more so is to understand how my score will react.  I'd much rather leave the 4000 to use towards my house if this isn't going to help my score.  I currently have about 7500 saved for the house down payment planning on doing fha.  

[MarineVietVet]

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@Anonymous wrote:

Hello all, 

i've posted a few times on here but still quite new to this.  So I have 1 final collections account that I still owe money on it's showing on my credit report at $6,550 i've been working with the creditor (Dominican University) to make this balance reflect a correct amount as I was being charged for a semester I didn't attend.  Today I got a call from the collections company they are using to collect on the debt that my balance was updated to reflect a balance owed for $4070 and change.  I said awesome i'm not committing to paying anything until I actually speak with someone at the school to verifiy what this charge is for.  

So my question is I'm going to pay this collection and prior to agreeing to pay i'm going to ask for a PFD.  Seperate from this I have two collections account both have been paid to zero, unfortinately prior to me knowing that we can leverage a pay to delete.  The only other negatives are like 2 trendlines that are roughly from 2009-2010 for student loans that defalted and i've actually already paid.  I've been trying to dispute a Chase student Loan as the original trendline started 09/2007 but can't seem to have success online.  

My current scores according to my fico 628, 619, 640 I have roughly 12 accounts now with 11,000 credit limit and 1450 owed among two cards.  Will me paying this debt actually help my scores?  I can't find a simulator that seems to accurate dipict what would happen.  My Fico doesn't account for removal of collection account, Credit.com doesn't change and then credit karma boost my TU score to 669 they show 611 currently instead of the 628 My Fico does.  Collection account is from 2010 so i'm closer to the end of statue of limitations than I am to the start.  Financially the only purchase i'm looking to do is a home and we have already been pre approved just not for the amount we wanted, here is to hoping that an extra 4 months makes a differance and they recommend i add another trendline which I did end up adding two (Slate and Freedom) currently not on credit report.  

My Fico scores closely reflect what the mortgage company pulled in October, thought it might be mindful information.  I've also submitted disuputes with transunion and equifax for accounts that I successfully disputed with experien and got removed.  Prior to myfico i paid free credit score and only got experien for 10 dollars a month figured 10 dollars more for three months will help me optimze my scores when we reapp in february.  

I know this can go here and in rebuilding credit but this more so is to understand how my score will react.  I'd much rather leave the 4000 to use towards my house if this isn't going to help my score.  I currently have about 7500 saved for the house down payment planning on doing fha.  

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You probably already know this but get everything in writing before you send any money. I realize this is becoming more and more a digital world but hard copies IMO are still a good thing to have.

[Anonymous]

Do you think doing a pay to delete will greatly impact my score considering I'd have a remaining two collections account paid or settled to zero balance?

For the mortgage process I know it will help my debt to income ratio but will it help the scores?

One more thing do I have a better chance do a pay to delete with the university directly or with the collections agency? Who do I have more leverage with ?

[MarineVietVet]

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@Anonymous wrote:

Do you think doing a pay to delete will greatly impact my score considering I'd have a remaining two collections account paid or settled to zero balance? Only time will tell. I know that's not much of an answer but it really is an unknown until it happens.

For the mortgage process I know it will help my debt to income ratio but will it help the scores?

One more thing do I have a better chance do a pay to delete with the university directly or with the collections agency? Who do I have more leverage with ? Does the university still own the debt and have only assigned it to a CA or have they sold it outright? If they've sold it then they cannot accept payment. You'll have to deal with te CA.

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[Anonymous]

Once again thanks for the reply.  

I believe the debt has been assigned for collection not actually sold to the credit agency, as the person I was dealing with at the University gave me the information for their billing department to send payment but at the same time the collections agency reached out to me directly and seemed to be quite in a hurry to collect the debt.  As far as I can remember the debt has always appeared as a collection account from the collection company though and never direcly from the University.  

I'm going to drive up to the university tomorrow try to settle on an amount smaller than the 4070 they are saying I owe and ask for a pay to delete. I'm aiming for roughly 3400 settlement, i'm going to put it on my QuickSilver Card get the cash back and send payment to capital one directly.  

[MarineVietVet]

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@Anonymous wrote:

Once again thanks for the reply.  

I believe the debt has been assigned for collection not actually sold to the credit agency, as the person I was dealing with at the University gave me the information for their billing department to send payment but at the same time the collections agency reached out to me directly and seemed to be quite in a hurry to collect the debt.  As far as I can remember the debt has always appeared as a collection account from the collection company though and never direcly from the University.  

I'm going to drive up to the university tomorrow try to settle on an amount smaller than the 4070 they are saying I owe and ask for a pay to delete. I'm aiming for roughly 3400 settlement, i'm going to put it on my QuickSilver Card get the cash back and send payment to capital one directly.  

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One way to tell is by looking at your reports. If the OC (Original Creditor) has sold the account they must report a zero balance owed.

Good luck tomorrow. Let us know how it goes.

[Anonymous]

So I visited the university and discussed my settlement offer of 3000 dollars with them figured they would counter me at something below the 4070.  They said they would take no less than 4070 but the young lady I spoke too said she would discuss the deletation of the account completely once paid in full with her supervisor.  I didn't want to press the matter further I thanked her and said i'd be in contact.  

The collections agency called me soon after my departure and attempted to collect the debt.  I told the collections person I was still serious about paying the debt even at the 4070 if they and the university agreed prior to payment that they would delete the trendline from my credit report.  

He connected me to his manager who was actually quite a nice fellow for being a collection department manager and I explained to him my reasoning he tried to get at the fact if I was attempting to buy a home or make a big purchase and I said I wasn't in dire need of this being removed as i've secured all financing neccessary.  It's just my attempt coming due on a debt from 4 years ago and at this point was much closer to it being removed without me having to do anything than it was to the begining of the 7 year statue of limitations in my state.  

I then attempted to say the reason for wanting to pay it and deleted from my report was because up until yesterday the balance was incorrect and they were reporting incorrect information and that I planned to apply for the University as a gradute student (tried to use as leverage the sound of a potential 40-50k in revenue for them might be a reason for them to play with me).  

Currently waiting on a call back from the manager after he discusses with the university what we have discussed and I told him i'll wait for your call but won't pay any balance owed until I have in writing via email or fax the terms of repayment.  

Waiting to hear back from them.  

[MarineVietVet]

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@Anonymous wrote:

So I visited the university and discussed my settlement offer of 3000 dollars with them figured they would counter me at something below the 4070.  They said they would take no less than 4070 but the young lady I spoke too said she would discuss the deletation of the account completely once paid in full with her supervisor.  I didn't want to press the matter further I thanked her and said i'd be in contact.  

The collections agency called me soon after my departure and attempted to collect the debt.  I told the collections person I was still serious about paying the debt even at the 4070 if they and the university agreed prior to payment that they would delete the trendline from my credit report.  

He connected me to his manager who was actually quite a nice fellow for being a collection department manager and I explained to him my reasoning he tried to get at the fact if I was attempting to buy a home or make a big purchase and I said I wasn't in dire need of this being removed as i've secured all financing neccessary.  It's just my attempt coming due on a debt from 4 years ago and at this point was much closer to it being removed without me having to do anything than it was to the begining of the 7 year statue of limitations in my state.  

I then attempted to say the reason for wanting to pay it and deleted from my report was because up until yesterday the balance was incorrect and they were reporting incorrect information and that I planned to apply for the University as a gradute student (tried to use as leverage the sound of a potential 40-50k in revenue for them might be a reason for them to play with me).  

Currently waiting on a call back from the manager after he discusses with the university what we have discussed and I told him i'll wait for your call but won't pay any balance owed until I have in writing via email or fax the terms of repayment.  

Waiting to hear back from them.  

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I hope you get good news.

[Anonymous]

Wanted to provide an update to this.  

Heard back from university yesterday they said they will to delete account from reporting if paid. They sent me an email. My plan now is to ignore communication from collection agency for the next two to three weeks. I think they think I'm desperate to pay it off and anticipate me paying it off anyway with minimum effort on their part. In two weeks I'll pick up the phone and say you want me to pay reconsider my offer of a pay for delete. I sent email directly to school as well as discussed this with collections agency. I visited the school last week and they fixed a reporting issue on balance I called them out on. Charging me for a semester I didn't attend and withdrew from I said provide me proof that I attended classes every professor takes attendance. They adjusted off 2000 + from the balance and are acting like they did this as a favor and good will to help me pay. I said no you did it because you wer charging me for an incorrect semester. 

Im out of angles to try and I'm really in no hurry to payoff 4070 dollars especially if a paid collections account is the same as an unpaid account.