installment acct question

[Anonymous]

I have an old loan that I defaulted on 3 years ago.  Would paying off the balance owed help my score in anyway?

[Anonymous]

NO!!

FICO doesn't care if the collection is paid or unpaid!!!

[Anonymous]

even if the balance is counting against my total owed on installment loans?

[Anonymous]

i will ad that it is reporting as a delinquent account with a balance of 180.  The simulator says a possible 20 point increase if I pay it off.

[Anonymous]

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@Anonymous wrote:

even if the balance is counting against my total owed on installment loans?

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In that respect and that respect ONLY will it help you to pay it off. Conversely, you could "settle" the account and see an increase (albeit small).

The ONLY way it will help is in regards to your overall utilization ... as FICO sees collections themselves the same, whether paid or unpaid.