Collection Question

[Anonymous]

Hello everyone!  I am in the middle of trying to purchase a home and need to get my FICO score up from a 620 to a 660.

On my account there are a couple lates here and there from student loans, but the major thing that is hurting me are 3 collection accounts for medical bills that were paid by my insurance 6 years ago and a profit/loss for a credit card that was never mine (fraudulently obtained).

I'm working with a broker right now and am in the process of having a Rapid Rescore completed since we're supposed to close on the house at the end of the week.  I am having him rescore the following...

Credit Cards (have 2 of them, paid them down to $0, was previously at 75% utility)

Collections (I contacted the medical company about all three, paid them off, and they sent me verification letters that I have forwarded on to my broker)

Profit/Loss (I also paid off this $247 on Friday so that it doesn't keep showing up as money owed)

I know I have read numerous posts on here about collections, but does anyone actually have a firm answer whether paying them helps your score at all?  I know they are still collections, but wouldn't t be better to have them at $0 than have outstanding money owing and increasing the debt on your FICO report?

My broker says that it will help with the payoffs, but I want to see if anyone has actually experienced a higher score by paying these off.  And yes, I have tried to work with both companies to get them deleted and the answer is no from everyone!

I really need to get something done her fast since I only have 4 - 5 days left so any other suggestions you may have to get my score up quickly would be greatly appreciated!!

Thanks,

[Anonymous]

Paying a collection will NOT help your scores......FICO treats unpaid & paid collections the same.

Credit Cards (have 2 of them, paid them down to $0, was previously at 75% utility

           EXCELLENT....you will see a score raise on this!

By paying outstanding debt will help with D/R    but unless the creditor agreed to delete they will remain on your CR....this will not help scores.

I do not know of any way to try to get the deleted in such a short time.    YOU couuld call them and ask them to delete ASAP.

profit/loss for a credit card that was never mine (fraudulently obtained).

This is hurting more then anything else.......Call them & ask what proof you can fax them in order to have it deleted!  it would be ID THEFT.........It could have started as a typing error but now you would claim IF THEFT.

Go to the police & file an ID thief report......Fax a copy to the CA and CRAs.........or have the broker do so     I have heard of rapid rescore but do not know how it is done........make sure that he has the police report...maybe he can get it delete faster

Please wait for others to respond to your post   they might have better info. for you.   Good luck