Collections

[riverajuan]

Is it best to pay off collections than to make payments on time? I noticed in myfico score simulator that if Pay my balances down which include collections there is almost no effect in my score.

However, if I make one monthly payment towards a late account it has a bigger effect on my score.

Please advise  if possible it will be greatly appreciated.

Thanks in advance

[guiness56]

Paying a collection will have no impact on your score at all.  Paid or unpaid they are still scored as a collection.

[DaBears]

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@riverajuan wrote:

Is it best to pay off collections than to make payments on time? I noticed in myfico score simulator that if Pay my balances down which include collections there is almost no effect in my score.

However, if I make one monthly payment towards a late account it has a bigger effect on my score.

Please advise  if possible it will be greatly appreciated.

Thanks in advance

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Hi riverajuan, if you can pay the collection and have them remove the TL that would be the best option.

[DaBears]

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@guiness56 wrote:

Paying a collection will have no impact on your score at all.  Paid or unpaid they are still scored as a collection.

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WAA. You beat me again in a reply 

[riverajuan]

I really thank all of you for your quick responses and advice.

This is a great site to rebuild my credit and learn how to retain a good credit once is rebuil

I really appreciated

Thank you

[DaBears]

We are here if you ever need help. Good luck and keep us posted!!!

[riverajuan]

Thank you, but there is so much to read and learn that I am going to stick around for quite a while