Collections

[Anonymous]

There was a collections delinquency in my report for $169 which draged down the scores by 40 - 50 points. A few questions:

- Will it help the scores if it is paid off? If so what kind of improvement I should expect.

- Should we ask the colections agency to remove in return for a payment?

- Any other advice to recover from this partialy or completely?

Thanks

[Mr_Mojo_Risin]

Really the only ways to see score improvement would be from doing a PFD(pay for delete) or letting time age it.

Not all collections agencies do PFD. I would suggest heading to the rebuilding forum and using the search bar to check for possible info on the collection agency.

[Anonymous]

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@Anonymous wrote:

There was a collections delinquency in my report for $169 which draged down the scores by 40 - 50 points. A few questions:

- Will it help the scores if it is paid off? If so what kind of improvement I should expect.

- Should we ask the colections agency to remove in return for a payment?

- Any other advice to recover from this partialy or completely?

Thanks

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Paid collections really do little to nothing score-wise for you. It needs to be removed to see a good gain back in points. What CA is it? Perhaps we can tell you if they are known to PFD (pay for delete)?

[Anonymous]

Paying it off won't improve your score.  Getting it removed will if it's your only major negative item.  As the others have pointed out, you want to attempt to negotiate the removal of the collection if you are to pay it.  That way you both get what you want instead of just them getting what they want.