Will settling an old collection improve my credit score at all?

[willhbauto]

Ok, so I did alot of credit repair back when I bought my house a few months back and there were a few collections I was told weren't necessary to be paid to get the mortgage, so I figured I'd wait to look into paying them. There are 3 total, all less than $500 and are approx. 4-6 years old. I have been paying my bills perfectly for a couple years now and don't think there will be future credit issues on my part. Since I've bought the house 7 months ago I have yet to see my credit score go back up. I'm wondering if calling these companies and atleast settling, since I don't have it in my budget to pay in full for deletion, will have any positive impact on my credit score. I've done the GW letters on them and disputed them repeatedly like the handbook says to do and had no luck.

I'm just concerned about applying for a business loan in the future for a start-up I've been thinking about and I know open collections aren't good even if you have a decent score. Not that mine is currently even decent, I consider it low, but I know once I get my revolving debt down below 30% it should go up there, but that's a step by step process that will take some time.

Current Scores: 646 (TU/EX) 656 (EQ)

[Anonymous]

I paid an old collection from 2003 two months ago and there was no change in my scores after this reported as paid.   I have had no lates since 2004.

[Anonymous]

It makes sense that it would, but it doesn't improve scores and can actually lower your score due to activity on a collection account. Strange....

However if you are able to pay it there is another option that may help your score A WHOLE LOTTA...! It's called PFD or Pay For Delete! That's when you agree to pay only if they agree to "delete and remove" the collection from your credit reports after paid in full. That should help you out.