Is it worth it to pay off c/o MCI

[Anonymous]

My scores are as follows: 604, 623, 603. I have two c/o that are phone company related; $321 (4/2005) and $117 (2/2005). They are scheduled to be removed 4/2010 and 12/2011, respectively. Would my score increase if I were to pay off these c/o? If so, what range of increase?

Also, I just paid off a Cap One CA (6/2006). Any thoughts as to what impact this will have on my score?

FYI...I just "0" my CC so I should get a boost from this as well.

[Ryan2151]

It's "worth it" to pay off any collection account, under the right circumstances. First, follow the procedures found on this site to have the collection agency confirm that you even own the debt. It's possible with the age of yours, they may not be able to prove this. Once they have proven the debt is yours, you need to contact the collection agency and ask that they agree to cease reporting the debt if you pay the full amount. DO NOT pay the amount prior to receiving written confirmation that they will no longer report the debt. No longer reporting means no reporting at all, no restarting of the clock, no showing as paid collection, no nothing. If you simpy pay back the amount, with no agreement in place, they will continue to report, the only difference being the account will show as Paid and in some cases, the "clock" will start over on the time that the debt is allowed to appear on your report. This DOES NOT help your credit score as the collection is still displayed and notated as just that, a collection. I have this problem with one of the bureaus now. I paid a medical collection and they restarted the clock on the debt, my score is over 80 points lower than with the other 2 bureaus for showing 1 collection as compared to none with the others.

[haulingthescoreup]

What Ryan is describing is called a PFD --"Pay for Delete." Some CA's are very cooperative, and others are very stubborn.

You can get more info on the Rebuilding Your Credit Board, and you can check out some sample PFD letters on the Frequently Requested Threads link that's stickied at the top of many of the boards.

Take seriously what it says about not signing your name (it could be scanned and put on a fake contract) and getting the agreement to delete in writing, on company letterhead.