can removing a collection lower score? urgent

[Anonymous]

Hi, Im not sure of I am posting this in the right place. I have a collection account with a bank

and i want to send them a pfd letter. When i used the myfico simulator it showed a nice increase of my score

if I paid it in full. My question is should I try to have the account removed off my credit report or should I just pay off the collection

in full?? I really need some advice on this as I am trying to rebuild my credit. I am scared that if I have it removed

that my score my not go up at all or worse it may drop.  Can someone please help me understand.

[pizzadude]

----->  When i used the myfico simulator it showed a nice increase of my score if I paid it in full

Are you sure about this ?   Collections, either paid or unpaid, will negatively impact your score.

The only way I could see that it *might* improve would be if the balance was somehow included in your revolving utilization, and paying it would lower your %Util.

I would go for the PFD to totally remove it from your CRs.

[Anonymous]

@pizzadude

thanks for your response! I just checked and you are correct  they are including it in my 

combined Revolving/Open Account balance, but only with transunion. With equifax it is showing

up as a collection account. I think i may just go ahead and send pfd letter. Once again, thanks for your

advice

[pizzadude]

Good luck with your PFD request, let us know how it goes !!

Collections will never help your FICO score ~ it's always best to have them removed.

[RobertEG]

Is the debt still within SOL?

I ask because if the debt is still within SOL, they have can still pursue legal action to seek collection of the full debt without any need for CR deletion.

Hard to predict what they will do, but a PFD request could raise interest in  your otherwise dormant collection.

[Anonymous]

@robertEG  I'm not really sure if it is. How would I go about finding this out? My credit is on the rise 

now and I want to do whatever I can to fix any negatives that I have or at least pay them off. I have been very

successful with having some of the accounts deleted. I only have 3 left. I took out a secured card and have 

been doing well with that too!  My goal is to try to get at least a 720 by mid summer. Thanks so much guys for

your advice and suggestions...

[pizzadude]

What state are you located in ?  And is this a charged~off CC account or a loan gone bad ??

[Anonymous]

@pizzadude   Hey there!

The bank is located in Ohio

[pizzadude]

The SOL for CC debts in Ohio appears to be 6 years.    This is a CC, right ?

If you live in another state, then the state where you live would likely have precedence, since you would likely be sued in your own state of residence.