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is it better to pay off utilites or make payments?

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serenity72
New Contributor

is it better to pay off utilites or make payments?

I am trying to get a mortage within the next year or two. I have a score of 507 for experian. I just got some letters today from Assest Acceptance regarding DTE and Ameritech. They say once my account is settled they will send me a paid account letter and close out the accoutn as well as report to all the credit bureaus. This was from 2003. Should I pay the full amount or make payments. Will it make a difference which way I do it FICO score wise?TY
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serenity72
New Contributor

Re: is it better to pay off utilites or make payments?

also is it better to to a PFD or just close the accounts?
Message 2 of 4
fused
Moderator Emeritus

Re: is it better to pay off utilites or make payments?



serenity72 wrote:
I am trying to get a mortage within the next year or two. I have a score of 507 for experian. I just got some letters today from Assest Acceptance regarding DTE and Ameritech. They say once my account is settled they will send me a paid account letter and close out the accoutn as well as report to all the credit bureaus. This was from 2003. Should I pay the full amount or make payments. Will it make a difference which way I do it FICO score wise?TY

Your FICO scores will not improve by simply PIF. Also, it's possible they can go down even if you start making payments on it. Getting it deleted will improve your scores. Do not pay a cent until a PFD is agreed to by the creditors on their letterhead.  Try this thread courtesy of Tuscani. GL!
 
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serenity72
New Contributor

Re: is it better to pay off utilites or make payments?

awesome!Thank you!
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