Collections accounts deleted - how much will it help

[Anonymous]

My wife has a transunion score of 631 presently. We need to get her score up higher before applying for a mortgage. She has 5 collections accounts from Sprint, Tmobile, Verizon, Dish Network, and Comcast from 4 years ago. I read that paying the original creditor and having them recall the collections accounts will remove the entries from her credit report.

I have negotiated repayment with Tmobile and Dish Network directly, and they both put in writing that the collections accounts will be removed from her credit report. My question is, how much will that effect her scores overall? I was told by a credit counselor it would not have much of an impact. Thanks in advance for your input.

[Anonymous]

As long as you have it in writing, It may be ok, although many people have said that paying off collections actually opens the case back up and changes the dates. When chargeoffs are calculated, they start the 7 years from the last time there was activity on the account, I.E. a payment. The clock starts ticking all over again. Hopefully they truly do the pay for delete. Technically they are not obligated to delete any accounts just because of a payment, although they'll update it to "paid collection".
Now to answer your question, I had 4 collection accounts deleted off of my Transunion report this month. As of December 7th my TU score was 622 and now it's 702. The amount from the collections being deleted was 47 points. Of course it's different for everyone. :-)

[Anonymous]

Thats why I negotiated with the creditor and not the collections agency. The creditors (Tmobile and Dish) said they will remove the accounts from collections and the entries would be deleted from my file all together. So it shouldnt show up as paid collections. If it does, I can dispute since I have it in writing from them that they would delete from the file.

[Anonymous]

I hope you can get comcast to delete. I had the ca on my record only not comcast. They won't delete my record from my reports, they say unless comcast tells them to do so. Comcast promised me after I pay the final bill which I did they will remove from my report and now they come back saying that they sent the collections agency as comcast does not show up on my report that it is satisfied and to put paid only. All they offer me is a letter saying zero balance. I even addressed it wtih the eo  of comcast and they even called me twice to repeat the same. I feel dissapointed. Please let me know if possible if they comply to deleting the record after payment with you if possible. Thanks.

[takeshi74]

Some removals will help but not as much as getting all of them removed, if possible.  We can't give you a specific number of points.  You'd have to monitor her scores.

---

@Anonymous wrote:

If it does, I can dispute since I have it in writing from them that they would delete from the file.

---

IIRC you can't dispute but you can take them to court.  Make sure you caefully research when it comes to collections.  Don't overlook the Rebuilding subofurm.