Pay off Collections or No? And can I have Paid Collections Removed?

[Anonymous]

Hello everyone. This is my first post, just discovered this forum earlier today.

I need to start rebuilding my credit, and have a couple of questions.

About 6 months ago, I paid off 5 small collections. They show as paid on my CBR's (learning abbreviations), but is there a way that these can be removed?

Also, I have 4 more collections to pay (it's a process), should I pay these now? And will paying them raise my score?

Thanks to everyone for any help.

[Anonymous]

Jstplnfrank-
The collections you have not paid yet, work for a PFD on them. Just paying them will not raise your score. The FICO formula dings for a collection, whether paid or unpaid. Check their ages and find out when they will fall off your CR. Those collections that are the newest, work to PFD first. The ones that are due to fall off in less than a year or so, leave them for last. THeir age is such that they're not doing too much damage to your reports. If there are any that simply won't accept a PFD, then contact the OC as well. Offer to pay the OC for the account. Request PFD from the OC. I've had a lot more success in getting deletion authorized, whether before or after a PIF, from the OC than from the CA.

THe collections you have already paid off, try to GW. Write a letter begging for deletion to both the CA AND the OC. Detail the circumstances that led to your being late, and if they are truly mitigating, the CA or OC may allow for deletion. Since the accounts are now PIF, you can also call the CA and OC and try to develop rapport -- it may help in your GWs being received and acted upon favorably. It made a world of difference for me.

[llecs]

There's also several success stories in here of posters DVing paid $0 balance collections and these were removed. Thought behind it is that the CA doesn't want to take the time and money to respond to the DV so they opt to delete instead. I'd do the GW route, but keep the DV in the back of your head.

[Anonymous]

Thank you for the info. Does anyone have an idea of how to handle a "Pay for Deletion" with a CA? Is it best to call or write? And if writing is the best option, are there sample letters out there?

Most of the accounts that need to be paid will not fall off of my CR until 2011, way too late for me.

And with the ones that I have already PIF, each one that I get deleted, how many points will my score increase approximately?

Thanks again for any help, I really want to get these things taken care of.

[diva0969]

Welcome to the forums!  If you haven't done so, please read Credit 101.  You can also use the search function to look for examples of PFD and GW letters.  The folks here are awesome and will do all they can to help you.  But go ahead and acclimate yourself with the forums and read as much as you can.  Lots of your questions can probably be answered while you await a response.

Again, welcome!

Diva

[Anonymous]

Thanks for all of the help so far. I found an example PFD latter that I am going to use. I haven't been able to find a good GW letter to use for CA's that have been PIF.

Also, should I try over the phone first? Or are letters better?

[llecs]

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jstplnfrank wrote:

Thanks for all of the help so far. I found an example PFD latter that I am going to use. I haven't been able to find a good GW letter to use for CA's that have been PIF.

Also, should I try over the phone first? Or are letters better?

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You can try over the phone, but they must respond back via mail, e-mail, or fax. Otherwise, conversations may be forgotten, if you know what I mean.

[Anonymous]

I'm in the same boat and I just started paying off a $9,000 medical debt, they have been harassing my credit report for the last 7 yrs...Go figure and since I got tired of the calls and just started sending like $5 a week until its finished. I just recently found out that you can make an expansion report that will allow you to build your household bills into a credit report that is recognized by the new Fico expansion report its is called PRBC and they are members of the BBB!