What is the best way to do this....

[Anonymous]

Hello everyone..

My husband and I are in the process of trying to buy a house, and unfortunately I am just 19 points shy of the minimum score required to obtain financing to buy a home.

I've been actively trying to clean up my credit over the past few months.  I have 4 small collections on my report and here is my question: Most of these collections were last active in 2006 or 2008.  Given that information, will it hurt me more to just pay them off or will it help me (short term)?  Here are the accounts:

$202 (last active 04/2008)

$185 (last active 02/2006)

$98 (last active 07/2006)

$96 (last active 03/2008)

I'm hoping to get this score jump of 19 points within the next 60 days which is a long shot, but I feel that what I do (or don't do) with these accounts listed above is what will make me or break me.  

Anyone with experience or knowledge of this type of situation, I would be most grateful to hear your reply. 

[Anonymous]

Just paying a collection will not help your score at all.  You need them removed.

I would send each CA a DV first, then if they validate send a PFD.

[Anonymous]

I understand your situation.  but just contacting the CA can open a can of worms.  It can have them abuse you file.  update it constantly, and CA update WILL drop your score lower paid in full  or not.  so, PFD is your ONLY option.   If yu DV them you might stirr things up.  I would send a serious PFD up front.

[Anonymous]

You always send a DV before you send a PFD.

[RobertEG]

If and when you finally enter into the formal loan applic process for your mortgage, it is almost a certainty that the mortgage lendor will require payment of these unpaid debts before they approve your mortgage.

How "small" or "large" unpaid debt is on a posted collection, it is still a major collection derog in your FICO scoring.  A collection is a collection.

You need to send offers of payment for deletion (PFD)  to each CA NOW!  That is the only way to secure any deletion from your CR.

Do this before you have to disclose the unpaid debt to the mortgage lendor, or they otherwise independently pick it up when they pull your CR.

Just paying them off without a PFD agreement from them wont help your credit score.