Sorry for another thread I've just got more questions. For background, I have six collections as follows:
ProCollect | $2000 |
Portfolio Recovery | $1406 |
Convergent | $1102 |
Receivable Mgmt Group | $435 |
IC Systems | $261 |
Enhanced Recovery | $126 |
Based on the PFD mega thread here, Portfolio and IC will PFD, Convergent and Enhanced may be able to be recalled by OC, and there is no info on the other two. Based on that information, should I start by paying off the smaller collections and work my way up, or should I start with the two that will PFD? Is there another way I should go about deciding which to pay first?
Starting Score: 587
I had a convergent and I paid it...it is now not on my credit report. The only collection I have left is PRA and they just reported 0 balance today so maybe next month that one will be removed. Then EE my last two bad accounts and finally a mostly clean TU file for Navy to look at lol.
As to your question, I've always said a paid collection is better than one that reports every month. So you know the ones that will delete so they are hurting you right now but they will disappear in the future at some point. Pay off the smaller non-PFD ones and let them start aging. Finish up with the PFD ones and hop over in the garden and wait patiently. I will even smuggle in a cooler of beer.
@GrandBay wrote:@renamariee everyone will have a diff opinion on this. I would pay off the accounts in the reverse order in which you listed them - smallest to largest. another option would be to pay off those that will not PFD as you can begin to have them age off and pay the PFD last as they will fall off in 30 - 60 days. friendly reminder: your scores may not budge until you've settled all accounts so do not get discouraged.
Paying a collection won't affect the date that it will naturally age off your credit reports. The date of first delinquency (DOFD) dictates when the account must be removed, which is 7.5 years after the delinquency - but most bureaus will remove at about 7 years.
What you should be mindful of us which of these collrction agencies are most likely to sue you. Generally, I'd say the longer you've dodged the debt and the higher the amount, the more likely you are to be sued. But some companies are quicker than others. The statute of limitations for how long you can be sued vary from state to state, so look up your own laws.
PFDs vs no PFD can make a big difference on your credit scores. I'd figure out how much you can commit to these debts either now or biweekly/monthly and try to make a PFD arrangement with the agencies you're unsure about. Then circle back to those that will definitely PFD at the end.
