topic Re: Collections in Rebuilding Your Credit

Collections

coachbeau — Wed, 14 Apr 2021 20:48:25 GMT

I currently have a medical collections of $401 that was added to my credit in 2016. Is it worth doing a PFD at this point?

Re: Collections

Aspireto850 — Wed, 14 Apr 2021 21:37:23 GMT

It's worth it if you owe the debt and can pay it off. A paid account looks far better than unpaid. There are quite a few CA's who will do a Pay for Delete. What is the name of your CA?

Re: Collections

coachbeau — Wed, 14 Apr 2021 21:49:10 GMT

It's debt that my ex didn't pay but it was for my daughter. That was her half that she never paid and when it went to collections they found me and attached it to my credit without ever sending me any notification. I guess the questions should have been is it really worth it point wise since it's so old. Not sure how many pts my credit would improve since it's so old.

Re: Collections

mycreditscoreisfair — Wed, 14 Apr 2021 21:52:43 GMT

@coachbeau wrote:
It's debt that my ex didn't pay but it was for my daughter. That was her half that she never paid and when it went to collections they found me and attached it to my credit without ever sending me any notification. I guess the questions should have been is it really worth it point wise since it's so old. Not sure how many pts my credit would improve since it's so old.

A lot of factors in play here. And the results will likely vary based on the totality of your credit profile. But in terms of what it will do to your score... is it your only collection? Will the collection agency delete it upon payment?

Simply paying it will likely have little to no affect on your credit. Paying it and having it removed from your credit reports could have a very big impact, depending on the rest of your profile.

As mentioned above, who is the collection agency?

Re: Collections

coachbeau — Wed, 14 Apr 2021 21:57:09 GMT

It's through Collections USA. I did speak with them and they will do a PFD and it's my only collections.

Re: Collections

Anonymous — Wed, 14 Apr 2021 21:58:38 GMT

Do it. You could be looking at anywhere from 35-80 points, depending on other factors in your profile. Scoring aside, paying it and having it gone means no threat of being sued for it either.

Re: Collections

mycreditscoreisfair — Wed, 14 Apr 2021 21:59:34 GMT

@coachbeau wrote:
It's through Collections USA. I did speak with them and they will do a PFD and it's my only collections.

Then yes, having it removed from your credit report is a no brainer, in my opinion.