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On principal it is better to wait for drop off instead of paying without deletion correct?

tropolis
Valued Member

On principal it is better to wait for drop off instead of paying without deletion correct?

I've got a few in collection I'm working on. Was 1 for 1 with Credit Collection Services, paid in full and I got an agreement that they'll remove in two weeks.

 

I have some others, like LVNV and Trident that I've read are more difficult. I really don't see the purpose in paying them though unless you get the agreement for them to remove. 

 

From what I've read on here a settlement will drop your utilization, but you could offset that by just funding a secured card to open up more available credit. I can see why in some cases that wouldnt work where you are talking tens of thousands, but my situation is about 1,500-2,000.

 

I don't know. I just don't see any reason to repay if they don't agree to delete unless I'm missing something.

Message 1 of 5
4 REPLIES 4
JL276
Regular Contributor

Re: On principal it is better to wait for drop off instead of paying without deletion correct?

@tropolis LVNV deletes the collection upon settlement in full or payment in full. 

Message 2 of 5
blindambition
Community Leader
Senior Contributor

Re: On principal it is better to wait for drop off instead of paying without deletion correct?

I'm not debating right or wrong. That's a personal choice, but the use of word principled, principled would be settling debts you incurred.

LVNV will PFD.

Message 3 of 5
Jnbmom
Community Leader
Senior Contributor

Re: On principal it is better to wait for drop off instead of paying without deletion correct?

How old are the collections? If they are older then you can wait for them to drop off and just wait it out for your credit to improve . If they are more recent that's a long time to wait and your credit will be dinged for longer.

.

EXP 758 TU 783 EQ 729
Message 4 of 5
LaHossBoss
Senior Contributor

Re: On principal it is better to wait for drop off instead of paying without deletion correct?


@Jnbmom wrote:

How old are the collections? If they are older then you can wait for them to drop off and just wait it out for your credit to improve . If they are more recent that's a long time to wait and your credit will be dinged for longer.

.


+1

 

In my rebuild, I waited a long time before even thinking about my credit from the time when everthing blew up. I am at 5-7 years out from when everything went derog.

 

Meaning, that I evaluated what would help me get to my end goal in a certain time-frame. If things are going to drop before I finish my rebuild, I felt like it would be wasted resources to pay something that drops off in a few months vs paying something that drops off in 2 years.

 

It does not help your credit if it is on there and even if you try to bury it with padding util. Each individual TL is still considered a "maxxed out" account and you will get dinged for both the status (CO/CA) and util (maxxed out).

 

So it does matter to pay them even if they do not PFD if they will be on your reports for a while due to the status, the constant (usually monthly) updates to keep your scores suppressed, and individual util.

 

I would weigh when you need your credit in order. If these accounts fall off soon, it is up to you if you want to wait it out, and focus working on items that will be reporting for longer.

 

Just remember you may not see much change in your scores with those baddies sticking around until they drop off, so don't be discouraged, as it can be frustrating. This method takes patience, but it is possible! Just make sure you are outside the SOL for being sued on those debts.

 

 

As others said: LVNV does PFD now, so that one is easy enough.

 

Good luck!




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