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NEED ADVICE PLEASE

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Valued Member

NEED ADVICE PLEASE

I have a credit card in collections. The balance on it is only 150 bucks. My question is this, what would be better for my credit score. Pay the balance down to 0 or should I pay like 25 bucks a month? I'm trying to figure out the best way to increase my score. And if I paid the payment every month for the account in collections does the collections agency report to the CRA that I'm paying on it?

Starting Score: 6/1/19 500
Current Score: 557
Goal Score: 750


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Message 1 of 21
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Community Leader
Senior Contributor

Re: NEED ADVICE PLEASE

This is a collection, this is not a positive thing. Who is the collection agency, how old is debt? You can try to pay for deletion, but this is in no way a positive thing. It needs to be taken care.
EXP 758 TU 783 EQ 729
Message 2 of 21
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Valued Member

Re: NEED ADVICE PLEASE

You didn't answer anything about my question I asked. All you did was state the obvious. Of course it needs to be paid off.

Starting Score: 6/1/19 500
Current Score: 557
Goal Score: 750


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Message 3 of 21
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Community Leader
Senior Contributor

Re: NEED ADVICE PLEASE


@Bears4910 wrote:
You didn't answer anything about my question I asked. All you did was state the obvious. Of course it needs to be paid off.

Ok, you should pay if off, making mothly payments is not going to help your credit. Again how old is it, who owns it and have you tried to PFD?

The collection itself is hurting you, if you can get them to PFD, then it should help, but if not paying it off will eventually help your scores.

EXP 758 TU 783 EQ 729
Message 4 of 21
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Moderator

Re: NEED ADVICE PLEASE

@Bears4910   It makes no difference if you make payments till paid of or give them a lump sum all at once. 

 

If this is your last remaining unpaid negative, your scores can start recovering after it's paid. There is no immediate gain from paying collection.

The way you re gain points is when updates stop. 

 

If this is not your last unpaid collection/CO, you probably wont see any scoring change 

If you have other negative accounts, please feel free to list them and that way you can get advice on how to handle those, especially the ones that will do PFD. 

 

Please try to keep your responses friendly and respectful. I understand this is a frustrating process, but we're all trying to help you, and sometimes helping requires asking additional questions like @Jnbmom  asked 

 

 

 

Message 5 of 21
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Moderator Emeritus

Re: NEED ADVICE PLEASE

I agree, it only helps to pay monthly payments when its an actual contract like a credit card or a loan.  When you default and are sent to collections, you get no "credit" for making monthly payments because actually the only reason its there is because you didn't actually pay per the original card agreement.  So, therefore, there is no credit for collection payments. There is only good credit when you DONT have them. 


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 676 EQ 676 EX 676
Filed Chapter 13 on 06/01/2017 after job loss.

Goal: FHA Construction Loan

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Message 6 of 21
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New Visitor

Re: NEED ADVICE PLEASE

I would say pay it all off - that thing off your record asap. Faster road to recovery. Time value thing.

Message 7 of 21
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Valued Member

Collections

Ok thanks everyone for all the advice
This is my last collections on my credit report. What weird is I disputed it and transunion took it off but experian and equifax didn't. I wonder if the other 2 places will take it off also. The collection itself is a hospital bill. The collections agency is common wealth. The amount is 794.

Starting Score: 6/1/19 500
Current Score: 557
Goal Score: 750


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Message 8 of 21
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Valued Member

Collections

I tryed disputing a hospital bill with all 3 cra and they verified accurate. How would I get them off my credit report if they say its accurate?

Starting Score: 6/1/19 500
Current Score: 557
Goal Score: 750


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Message 9 of 21
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Community Leader
Super Contributor

Re: Collections

Is it accurate?







Message 10 of 21
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