@Anonymous wrote:
I'm just a little confuse and I'm not fully understood how this work. Please help me understand these credit thing a little beter. Correct me if Im wrong, but my understanding is when people did a settlement/paid off debt with collection and show as paid but the score remain the same? why?
I have 5 collection, I hunt all 5 collection down and 3 make settlement paid for less and 2 are paid in full. The 3 I paid as settle was marked as paid for less then full balance, but the 2 I paid in full was removed from me report file.
There for I have no more collection another words I have no debt collection going against me but why my score still remain the save. Rather be at 3 credit bureau or Fico score all still the same.
Am I doing something wrong? I thought get rid of collection will improve your score? Please help me understand.
I also heard and read about if I do settlement it will hurt my score rather then helping me? Can I still write a letter to the agency to have them mark as paid in full instead of settlement for less?
Please I really need some advice and more understand how this goes, I am trying to rebuild my credit but it seem like I dont have much luck like anyone els.
Thanks in advance guys.
Yes, it is not fair that paying off an old debt will not help your score. FICO 09 is supposed to exclude paid off collections. However, the collections may fall off your CR before FICO 09 is widely used (or it may not).
The reason why simply paying off your old collections may hurt your score is the date is updated. As collections age, they hurt your score less. However, by paying they appear to be more current.
Having the two collections removed may help your score a little, but the last collection on your report is the most important. The best way to have a collection removed is to only agree to pay if the CA agrees to remove the collection (PFD). Once you have paid, I believe your best option is to write a GW letter to see if the collection agency will remove the account. The last option is to dispute the account on your CR and see if the CA bothers to validate it. However, I am not an expert in these matters. You may want to check in the rebuilding forum for the best way to go about this.
