Final Collection account advice

[CenturyChild]

I have 1 last collection left on my report (only Eq and TU) that is 3 1/2 yrs old. its for $71.

Recently, my USAA score tanked as well as Credit Karma.

USAA has   EX:722    EQ603    TU603

The only difference is that EQ and Tu have this 1 collection. 

After further inspection I noticed it is now showing as Open and late as 11-30-13.

I assume this is why the drop as in the section about whats hurting your score for EQ and TU, being late recently is the number one reason.

I am well aware that FAKO score matter little, and my Tu Walmart FICO is 670. So apparently, FICO doesn't care or does know its a 3 and a 1/2 year old collection.

At any count, my last app spree I was declined for Discover. And oddly, one of the reasons was last collection too soon and late.

Ive never been late on anything, and other than this 1 collection Im clean.

I was just going to let it be since it was already at the half way point but now Im thinking perhaps, I should send payment with a Goodwill letter. So that at the very least they will close the account and update to paid.

Any suggestions?

[Involver]

I would definitely send a GW / PFD, especially since it's only over $71.  I know I wouldn't want something that small to be the one issue standing between me and a clean credit history.

[CenturyChild]

That was my thoughts as well.

Im just not sure if it'll do any good. on the phone to get all info I needed to pay I asked about a PFD and he said they do not do PFD and couldn't remove anything, but would update it to paid $0 bal.

Perhaps its still worth the effort. I may get lucky.

[RobertEG]

The recent decline could also be a result, not only of the collection on your CR, but also of the fact that the debt remains unpaid.

Unpaid, delinquent debt can be a basis for denail regardless of score.

The collection may be at the half-way point to CR exclusion, but not so as to its possible continued impact on obtaining new credit.

It can remian a factor until satisfied.  Credit approval often depends upon more than just your three digit FICO score unless the creditor does not do a manual review of your CR.

If not planning to app for anything in the immediate future, then you probably have time to continue pursuit of a PFD, and thus possible removal of its effect on your score.

However, it might be best to get it satisfied prior to any further credit apps.

[CenturyChild]

Thanks.

No, I have no intention of new credit. Gardening for the next year at which point I plan on trying for higher limits on my current cards.

I'll work with them and hopefully we can come an agreement for getting it ermoved. But I suppose worst case, having it paid and closed will still be best, even if the FICO score itself is unaffected either way.