topic Re: Advice on paying collections in regards to credit score in Rebuilding Your Credit

Advice on paying collections in regards to credit score

OneMoreCouch — Tue, 22 Feb 2022 18:44:55 GMT

Hello all,

I have two collections (~$3000 and $1400) on me that are mine but they are from almost 3-4 years ago. My financial situation has changed today and I am able to pay off both collections in full. However, I need some advice on how to do this in the best way to benefit myself most. My goal is to pay off the collection to benefit my credit score the most. My credit score is still relatively high (low 700 or high 600's depending on which credit score)

Only one of the collections, the $3000 one, is on one of my credit report. What do I do about the other one that is not on my credit report? I'm sure the debt is mine as it's from paypal and I found a delinquent email from paypal in my email. Does this mean paying for this won't impact my credit score at all?
For the one that IS on my credit report, what is the best way to do a pay-for-delete if I am willing to offer to pay the full balance? Is this even worth it if my debt is almost 4 years old? Should I just keep it delinquent until it passes the statutes? I know this feels wrong morally as it is my debt and I CAN pay for it today but I want to do it in the best way that benefits my credit score.
If I do proceed with pay-for-delete, what would be the best steps to do so. Should I call them on their phone and request this over the phone. Then, ask them to send a written snail mail confirmation to my address if they accept? Or is the better approach to not call them at all and send them a snail mail. Also, how do I offer the amount of debt paid? Should I immediately offer to pay in full balance for pay for delete or should I start off at a lower percentage?

Again, my credit score is still doing well but I figured it is morally correct to pay off my collections and get it off my record. But after my research, it seems that I have these questions that I need to be answered. Thank you guys for all your help!

Re: Advice on paying collections in regards to credit score

Sandman771 — Tue, 22 Feb 2022 18:52:01 GMT

Who is the non paypal one with? There are certain Collection Agencies that do pay for delete.

Re: Advice on paying collections in regards to credit score

OneMoreCouch — Tue, 22 Feb 2022 20:51:34 GMT

The creditor name is IQ Data International. Do they do pay for delete?

Re: Advice on paying collections in regards to credit score

FireMedic1 — Tue, 22 Feb 2022 23:05:06 GMT

I think they do. There are threads going back to 2015 that was a success. Either way. Call and ask. Paying off a collection wont do anything to a score. Once it falls off it will. Lets us know the outcome. Good Luck!

Re: Advice on paying collections in regards to credit score

BB30 — Tue, 22 Feb 2022 23:14:17 GMT

So for the one that's on your report, give them a call and see if they'll do PFD. You might be able to get them do it for less than the full amount, too. If they will, have them send an email guaranteeing it will be deleted. Or if it's legal in your state, you can record the phone call.

For the PayPal one...call them and find out what the status is. You want to take care of it BEFORE it goes to collections and hits your report. It still might happen.

Re: Advice on paying collections in regards to credit score

OneMoreCouch — Wed, 23 Feb 2022 16:43:39 GMT

Hello,

Thanks for your message. The paypal one actually is already in collections from Unifin but I don't see it anywhere in all 3 of my credit reports. How should I go about negotiating about this one since perhaps a "pay for delete" wouldn't make sense as thre is nothing to delete.

The debt is already about 1-2 years old I believe

Re: Advice on paying collections in regards to credit score

OmarGB9 — Wed, 23 Feb 2022 16:46:05 GMT

@OneMoreCouch wrote:
Hello,

Thanks for your message. The paypal one actually is already in collections from Unifin but I don't see it anywhere in all 3 of my credit reports. How should I go about negotiating about this one since perhaps a "pay for delete" wouldn't make sense as thre is nothing to delete.

The debt is already about 1-2 years old I believe

You'd do the same thing, basically, except it'd be more of a "pay to not report."