topic Re: Pay Off, Settle, Or Wait in Rebuilding Your Credit

Pay Off, Settle, Or Wait

hastysloth — Wed, 02 Sep 2020 13:18:57 GMT

Hello, i'm new to the forums. I've been lurking for a while, while attempting to rebuild my credit from when I was young and didnt care about anything. Currently EX - 627, EQ - 646, TU - 649.

Anyway, I have a Verizon FiOS account that is reporting as collections from early 2019. I attempted to call them to see if they would do a PFD, but they would not. What would my best course of action be? Is it beneficial to PIF over settling with them? Will updating the account cause the negative account to stay on my credit for a longer period of time?

Also, while I have you guys here. I have a 13 year old credit card account in good standing that is only reporting to EQ and TU causing those scores to be ~20 points higher. Is there anyway that I can get it to report to EX as well?

Re: Pay Off, Settle, Or Wait

Brian_Earl_Spilner — Wed, 02 Sep 2020 13:27:36 GMT

Verizon won't PFD so settle it because it's gonna be there until it falls off, which is up to 7.5 years from DoFD. It will sing you until the balance reports 0, then stop.

As for the credit card, if they don't report to the 3rd bureau, there's nothing you can do.

Re: Pay Off, Settle, Or Wait

Anonymous — Wed, 02 Sep 2020 13:43:53 GMT

@hastysloth wrote:
Hello, i'm new to the forums. I've been lurking for a while, while attempting to rebuild my credit from when I was young and didnt care about anything. Currently EX - 627, EQ - 646, TU - 649.

Anyway, I have a Verizon FiOS account that is reporting as collections from early 2019. I attempted to call them to see if they would do a PFD, but they would not. What would my best course of action be? Is it beneficial to PIF over settling with them? Will updating the account cause the negative account to stay on my credit for a longer period of time?

Also, while I have you guys here. I have a 13 year old credit card account in good standing that is only reporting to EQ and TU causing those scores to be ~20 points higher. Is there anyway that I can get it to report to EX as well?

Who did you call, Verizon or the CA? and who is the Collection Agency?

If an account is not reporting to an specific bureau, you can call them and ask them to send a refresh if they report to that bureau. Sometimes accounts get omitted if previously disputed. If that creditor does not report to EX at all, there is nothing you can do,.

Re: Pay Off, Settle, Or Wait

hastysloth — Wed, 02 Sep 2020 14:49:08 GMT

I called and talked to Verizon collections department. It's on my credit as Verizon collections.

Re: Pay Off, Settle, Or Wait

Anonymous — Wed, 02 Sep 2020 15:00:59 GMT

@hastysloth wrote:
I called and talked to Verizon collections department. It's on my credit as Verizon collections.

What advantage do you see for waiting?

If it was me, and they are not interested in PFD, I`ll settle for 40% or so.

Re: Pay Off, Settle, Or Wait

hastysloth — Wed, 02 Sep 2020 15:23:04 GMT

@Anonymous wrote:
@hastysloth wrote:
I called and talked to Verizon collections department. It's on my credit as Verizon collections.
What advantage do you see for waiting?
If it was me, and they are not interested in PFD, I`ll settle for 40% or so.

I didn't know if I paid the balance it would update and stay on my credit longer. I am also curious if it's beneficial to PIF over settle? Sorry, I'm new to all the credit stuff.

Re: Pay Off, Settle, Or Wait

Anonymous — Thu, 03 Sep 2020 02:43:33 GMT

@hastysloth wrote:
@Anonymous wrote:
@hastysloth wrote:
I called and talked to Verizon collections department. It's on my credit as Verizon collections.
What advantage do you see for waiting?
If it was me, and they are not interested in PFD, I`ll settle for 40% or so.
I didn't know if I paid the balance it would update and stay on my credit longer. I am also curious if it's beneficial to PIF over settle? Sorry, I'm new to all the credit stuff.

Paying it will not cause it to stay in your credit any longer than not paying it. Collections will stay in your credit for about 7 years.

If they are willing to settle, you should settle. The collection will still be reported as zero. I`d call again and ask if they can recall the collection if you pay in full and see if that helps. Sometimes getting the right agent makes all the difference.

Re: Pay Off, Settle, Or Wait

hastysloth — Wed, 02 Sep 2020 17:07:09 GMT

@Anonymous wrote:
@hastysloth wrote:
@Anonymous wrote:
@hastysloth wrote:
I called and talked to Verizon collections department. It's on my credit as Verizon collections.
What advantage do you see for waiting?
If it was me, and they are not interested in PFD, I`ll settle for 40% or so.
I didn't know if I paid the balance it would update and stay on my credit longer. I am also curious if it's beneficial to PIF over settle? Sorry, I'm new to all the credit stuff.
Paying it will not cause it to stay in your credit any longer than not paying it. Collections will stay in your credit for about 7 years.

If they are willing to settle, you should settle. The collection will still be reported as zero. I`d call again and ask if they can recall the collection if you pay in full and see if that help. Something getting the right again makes all the difference.

Ok, great. Thank you!

Re: Pay Off, Settle, Or Wait

hastysloth — Thu, 03 Sep 2020 00:25:10 GMT

@Anonymous wrote:
@hastysloth wrote:
@Anonymous wrote:
@hastysloth wrote:
I called and talked to Verizon collections department. It's on my credit as Verizon collections.
What advantage do you see for waiting?
If it was me, and they are not interested in PFD, I`ll settle for 40% or so.
I didn't know if I paid the balance it would update and stay on my credit longer. I am also curious if it's beneficial to PIF over settle? Sorry, I'm new to all the credit stuff.
Paying it will not cause it to stay in your credit any longer than not paying it. Collections will stay in your credit for about 7 years.

If they are willing to settle, you should settle. The collection will still be reported as zero. I`d call again and ask if they can recall the collection if you pay in full and see if that help. Something getting the right again makes all the difference.

If the account is in their internal collections department, can it be recalled? From what I'm reading online that means to pull it back from an external collection agency.

Re: Pay Off, Settle, Or Wait

Anonymous — Thu, 03 Sep 2020 00:54:04 GMT

i have a collection from Verizon FIOS as well but the collection agency is reporting it to my EX/TU not Verizon but it does say on the bottom Original creditor Verizon. The collection agency is EOS CCA if it does take 7 or 7 1/2 years to be deleted from the reports. why it shows "ON Record until" 2022 on EX/TU. both got on my reports in 2018 im a bit confuse with this. im in NYS if that helps i don't know if NY has a 4-5 year rules or what.

Re: Pay Off, Settle, Or Wait

Anonymous — Thu, 03 Sep 2020 01:00:54 GMT

@Anonymous wrote:
i have a collection from Verizon FIOS as well but the collection agency is reporting it to my EX/TU not Verizon but it does say on the bottom Original creditor Verizon. The collection agency is EOS CCA if it does take 7 or 7 1/2 years to be deleted from the reports. why it shows "ON Record until" 2022 on EX/TU. both got on my reports in 2018 im a bit confuse with this. im in NYS if that helps i don't know if NY has a 4-5 year rules or what.

NY does have a 5 year rule if you have paid it.

EX "on record until" date includes a generous 2 months of Early Exclusion, this often cinfuses people regard drop dates on the other 2 bureaus and EX EE offering of 3 months, so the original drop date is 2 months later than the "on record until" date and what TU should have listed as "estimated date of removal".

Re: Pay Off, Settle, Or Wait

Anonymous — Thu, 03 Sep 2020 01:26:42 GMT

ok i understand now thanks you. One more question my EQ 750/TU 620/EX590 fico 8 scores. i have a very thin line of credit history i got a verizon EOS CCA collection which i haven't paid yet its reports from 2018 reports to EX/TU. i have 1 Credit One C/O from 2015 reports to EX on the bottom it says SOLD to MSW Capital. i have nothing else on my report thats negative.

1 Capital one Secured card 8 months old started with 200 after 5 months at $500 now 5% UT.

1 Discover IT Secured card 3 months old 500 limit 2% UT.

if i were to pay off the collection from verizon EOS CCA which is over 2 years now will it increase my score?

And if it does increase my score should i get a self lender loan to have credit mix going on? myfico simulator shows if i make 24 months payments on time there will be 40-70 points increase across all the 3 agency's. im planning to go for a mortgage in 2 to 3 years time by 2023 i dont know if i should pay that collection now or just wait it out when it gets deleted from the credit reports by 2022. its 2k i can pay now but i dont know if its worth it if they dont PFD when pay in full.

Re: Pay Off, Settle, Or Wait

BmoreBull — Thu, 03 Sep 2020 02:25:55 GMT

@Anonymous wrote:
ok i understand now thanks you. One more question my EQ 750/TU 620/EX590 fico 8 scores. i have a very thin line of credit history i got a verizon EOS CCA collection which i haven't paid yet its reports from 2018 reports to EX/TU. i have 1 Credit One C/O from 2015 reports to EX on the bottom it says SOLD to MSW Capital. i have nothing else on my report thats negative.
1 Capital one Secured card 8 months old started with 200 after 5 months at $500 now 5% UT.
1 Discover IT Secured card 3 months old 500 limit 2% UT.
if i were to pay off the collection from verizon EOS CCA which is over 2 years now will it increase my score?
And if it does increase my score should i get a self lender loan to have credit mix going on? myfico simulator shows if i make 24 months payments on time there will be 40-70 points increase across all the 3 agency's. im planning to go for a mortgage in 2 to 3 years time by 2023 i dont know if i should pay that collection now or just wait it out when it gets deleted from the credit reports by 2022. its 2k i can pay now but i dont know if its worth it if they dont PFD when pay in full.

Don't worry about the simulators. They were telling me a month ago to pay my bills on time for 24 months to get to 680. Now that I'm past that it says 707. Strictly for entertainment purposes if you ask me. Any collection will look better paid, even if settled for less, than an unpaid one. Once it reports 0 balance you may see a score bump, but it's not guaranteed. As far as the co, if it's been sold, it should be reporting 0 and not be updating. I would reach out to the collections agency and see if they will do a PFD. If you get that one removed and the Verizon one settled, you should see a bump in your scores. Though the charge off will hurt you for the full time it's on your report.

Re: Pay Off, Settle, Or Wait

sjt — Fri, 04 Sep 2020 18:06:33 GMT

@Anonymous wrote:
i have a collection from Verizon FIOS as well but the collection agency is reporting it to my EX/TU not Verizon but it does say on the bottom Original creditor Verizon. The collection agency is EOS CCA if it does take 7 or 7 1/2 years to be deleted from the reports. why it shows "ON Record until" 2022 on EX/TU. both got on my reports in 2018 im a bit confuse with this. im in NYS if that helps i don't know if NY has a 4-5 year rules or what.

NY has a 5-year rule on paid or settled accounts. Also, the clock starts ticking from the time you first became delinquent that led to collection status, not when it was sent to a collection agency.