@Kit5 wrote:I have a two fold question. I would like to apply for an auto loan within the next few months. I have about 8k of collections on my credit report. I could pay about 4K off right now but I've been told that paying off a collection won't help improve a credit score. The oldest account is 2018 so it won't fall off anytime soon. My auto score is between 543 and 600 depending on which bureau you choose. Would it be wise to pay any of the collections or should I just save that money for a down payment on a car?
I qualify to join Navy Federal Credit Union because of my father. I've heard great things about their secured card. Do they do a hard pull for either joining or applying for the secured card? I also thought about TD Bank. There are none in my area but I should be able to apply online.
I'm new to credit rebuilding and don't know much, including abbreviations. Any help is greatly appreciated!
If you contact the collections agency and try a pay to delete (Paying a balance to have it removed from your credit report), that could help your score for sure. Definitely try to negotiate to your payments with the collections agencies.
NFCU does not do a hard pull for joining them with checkings/savings but if you get a credit card, you will see a HP with Transunion.
Hope this helps.
Paid collections are not reconized in FICO 9. Once paid you'll want to find who pulls FICO Auto Score 9. If you can list out who the collections are with. We'll see who does do PFD. We'll need anything else thats suppressing your score. Its a little low for the best interest rates.
Here are the abbriviations:
https://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458
@Kit5 wrote:The collections are as follows:
Midland Credit - 2693 for Cap One card
Midland Credit - 3699 for Cap One card
Jefferson Capital- 250 for Verizon bill
Portfolio Rec - 400 for Comentiy Bank
These others show the name of the original creditor but still say placed for collection. Is it possible that I can reach out to these companies and actually pay them directly to delete?local hospital - 293
Capital One - 795
Capital One - 372
locak credit union - 178
You're in luck - all 4 of your collections do PFD! I'd hurry and try to negotiate with them if you can swing it. The only caveat is that with Midland, the account must be 2 years from DOFD (first missed payment on original account that led to charge off).
As for the last 4 accounts, you may still be able to pay them directly, yes. I'd contact them.
