Collection Account - pay or not to pay

[seanf12]

I have two CAs with a total of $5600 (NCB and Ad Astra).  I'd like to look at a mortgage later this year, and I am planning on trying to negotiate a PFD.  If I am unable to do so, in terms of increasing my chances at mortgage approval and/or more favorable rates, am I better off paying the collection accounts in full or am I better off trying to settle and save money?   I obviously want give myself the best chance at approval down the road, but if settling vs paying in full won't have an impact, then why pay in full

thanks!

[simplegirl]

Ad Astra will delete if the collection is 2 years old from the date you defaulted on it. Also as far as a settlement offer with them i had to call to ask for a settlement. The lady i talked to said i had no settlement offers so i said so I can't settle this debt and then she said hold on let me speak to a supervisor and came back with a settlement offer of 70%% off. I defaulted on their debt in 2019.

[seanf12]

Thanks...yah I just read about the two year rule with Ad Astra.  Unfortunately I'm only about a year defaulted on this debt with them

[simplegirl]

well i tried to get early removal but she told me it won't come off until October so once you paid it will sit until your 2 year mark.

[Anonymous]

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@seanf12 wrote:

I have two CAs with a total of $5600 (NCB and Ad Astra).  I'd like to look at a mortgage later this year, and I am planning on trying to negotiate a PFD.  If I am unable to do so, in terms of increasing my chances at mortgage approval and/or more favorable rates, am I better off paying the collection accounts in full or am I better off trying to settle and save money?   I obviously want give myself the best chance at approval down the road, but if settling vs paying in full won't have an impact, then why pay in full

thanks!

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Was it speed cash (AD Astra) and rise (NCB)?

My two cents:

Both PFD, so definitely work on settling with them.

Even if you have to wait for AD Astra to remive the CA when delinquency hits 2 years old, do it, and soon. If AD Astra does not fet paid, they sell to NCA, who under no circumstance will PFD.

This is especially important because you will not get the biggest score boost from handling CAs until the last CA comes off your CRs. So if you only deal with NCB because they PFD and decide to do notjing with AD Astra since they will not delete right now, you will end up stuck with a CA that will not PFD and your scores will not improve nearly as much as if you just dealt with both and waited for AD Astra to age off.

Paid CAs do not improve your scores (or a few points at best), but they at least look better, and would likely need to be dealt with anyway to move forward with a mortgage.

Again, NCB does PFD, but you need to speak with a higher up, no matter what the frontline CSR says. They will say they will work with you and that they never do PFD. This is untrue and can be easily dealt with at the management level. You may have to PIF to get the PFD with NCB, but you can try to settle for less.

Also AD Astra does not give very large discounts, so you may need to prepare for that. Every account is different, but certainly try, as you will never know how low you can get them to go and PFD unless you do!

Good luck!

[seanf12]

Thank you! Yep, you are correct.  Astra is Speedy Cash and NCB is with Rise

good to know about NCA as well 

[Anonymous]

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@seanf12 wrote:

Thank you! Yep, you are correct.  Astra is Speedy Cash and NCB is with Rise

good to know about NCA as well 

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I, too, have/had CAs for Speedy Cash and Rise. AD Astra is Speedy Cash's in-house CA. Rise seems to CO accounts after being 30d late and sells them to NCB.