I have a 2011 collection with Ad Astra. From what I read they are great with PFD and although they won't put it in writing they keep their word. I've been planning to call and request a PFD in January, but a friend recently asked why I was bothering since it's almost 4 years old and will most likely not bump my score any.
It's the only lonely collection on my report. Should I not poke the bear?
@RobertEG wrote:In my opinion, yes.
It's a major derog, and particularly if it is your only major derog, is affecting your score fairly substantially by keeping you in a negative scoring bucket.
And, regardless of specific score impact, an unpaid delinquent debt can, in and of itself, be grounds for denail of new credit.
That remains so even after eventual credit report exclusion of the collection.
Leaving an unpaid debt alone does not make it go away.
Yeah, I know it's not going away for another 3 years and by "away" I mean off my credit report...not really away.
I'll likely try for the PFD but I think I may wait another month or two since it looks like I'll need to get a new car sooner than planned. On the off chance they don't delete it I'm assuming paying it will update and thus drop my score. Last time I checked my CU offered me a pretty good rate considering my scores (5.75%) so I probably better do that first just in case.
@Anonymous wrote:
What's the amount owed? You can always a lower amount asPFD, see if they take it. No harm in trying, and you'll save in interest anyway on the car loan. Heck, even paying that in lieu of a down payment might get you 110% financing (tax and fees and such).
It's only $900 and from what I've read, this CA will only PFD is you pay the amount owed in full. They'll offer a settlement for lower, but will only mark the debt as paid if you choose that option. I want it gone. LOL
I'm not concerned with the money as I can buy the car and pay the debt. I'm concerned with my scores taking a hit if they mark as paid but don't delete and the lower score effecting my auto loan APR.