topic Re: Will my credit score go up by paying off collection? in Rebuilding Your Credit

Will my credit score go up by paying off collection?

Anonymous — Fri, 10 Apr 2009 03:04:04 GMT

We found that my credit report as 2 collections on it we were not aware of. They are two small amounts and have intentions of paying them off at some point, regardless of if it helps the score or not... but it would be nice to know if it will? Thoughts?

Re: Will my credit score go up by paying off collection?

Anonymous — Fri, 10 Apr 2009 03:13:28 GMT

Nope and depending on the dates associated with the collections, paying could cause the accounts to update and decrease your score.

Are these medical? If so, check out the "recovering from medical debt" board-- see link below.

Have you DV'd? Tried to negotiate a PFD?

What is DOFD? Are they beyond SOL?

Re: Will my credit score go up by paying off collection?

Anonymous — Fri, 10 Apr 2009 03:31:10 GMT

@Anonymous wrote:
Nope and depending on the dates associated with the collections, paying could cause the accounts to update and decrease your score.

Are these medical? If so, check out the "recovering from medical debt" board-- see link below.

Have you DV'd? Tried to negotiate a PFD?

What is DOFD? Are they beyond SOL?

Thanks, I am very new to the lingo, so hopefully I get this right:

Not medical.

We've not DV'd as we *know* they are valid..... do you still do it then?

Not tried to negotiate anything- does that really work? If they DO take them off, does that raise your score?

SOL is 6 years and DOFD is... um, not sure how to figure that out.... one says DATE OPENED: 5/8/05 the other was apparently just in October.

Re: Will my credit score go up by paying off collection?

Anonymous — Fri, 10 Apr 2009 03:42:25 GMT

DMWBCC wrote:
@Anonymous wrote:
Nope and depending on the dates associated with the collections, paying could cause the accounts to update and decrease your score.

Are these medical? If so, check out the "recovering from medical debt" board-- see link below.

Have you DV'd? Tried to negotiate a PFD?

What is DOFD? Are they beyond SOL?
Thanks, I am very new to the lingo, so hopefully I get this right:

Not medical.
We've not DV'd as we *know* they are valid..... do you still do it then?
Not tried to negotiate anything- does that really work? If they DO take them off, does that raise your score?
SOL is 6 years and DOFD is... um, not sure how to figure that out.... one says DATE OPENED: 5/8/05 the other was apparently just in October.

Even if you know the debt is yours, IMO you should still DV to make sure the CA still has the account and is collecting on it.

Yes, several have had luck negotiating a PFD with the CA. Yes, it will likely help your score-- especially if all your collections are removed.

SOL usually runs from date of last payment....has it been 6 years since then or can you PIF?

DOFD you would find on your EQ report or a removal date from your EX or TU report would work.

Date open really means nothing when dealing with collections.

If you haven't already-- I'd pull your free annual reports. See link below.

Re: Will my credit score go up by paying off collection?

Anonymous — Fri, 10 Apr 2009 21:51:21 GMT

Welcome to the wonderful and wacky world of the credit "scoring" game. The game is played by strange rules that are sometimes counter intuitive to most people. However, you have to play by them.

Simply paying off your debt, interest, and penalties doesn't matter. It is HOW you pay it off, or more precisely what you do BEFORE you pay it off.

Imagine you have two people Joe and Jim.

Joe went through a difficult time got behind on bills had some credit accounts default and collections. He struggled and sacrificed but pulled himself up and paid off all his debt, including ALL interest, ALL penalties, and ALL late fees..... While he was late, no one ever lost one red cent with Joe's signature. Not one cent....

Joe's credit score is going to suck....and suck hard for 7 years.

Jim went through a very similar situation in his life. However, Jim played the game. He lucked up and got some items removed on technicalities by following the rules to game. He negotiated down his debt, and didn't pay in full. Creditors lost money on Jim. He worked the system and was diligent. He ended up paying back a lot less then Joe and in the end his credit score looks much better then Jims.

As crazy as it sounds you can't just pay your old debts. You have to play the game.

Good Luck!

Message Edited by ntkebh on 04-10-2009 02:51 PM

Re: Will my credit score go up by paying off collection?

Anonymous — Fri, 10 Apr 2009 23:06:14 GMT

Thank you! I am starting to see the point. So, challenge, do the DV even if I know it's valid, then what? What if they validate? What do you say then? Sorry, I am rather timid when it comes to this whole thing- the whole *Make em scared* tactics work well with me!

Re: Will my credit score go up by paying off collection?

Schoolbuskid — Sat, 11 Apr 2009 01:28:47 GMT

If they validate then you know for sure that the debt is legit and yours. You may then negotiate a PFD (pay for delete) letter, to get the item in question removed! There is always a chance they are not able to validate, and should then delete!