Walking the line btw util & coll payoffs

[Anonymous]

I'm weighing the decision.. I have $2500 in med collections left. I could PIF them all w/ the new NFCU cc. The cc should start showing on my CR around 1 May. and would put my util at about 18% on the only CC I have, but would delete eight med collections from 2003-2005 off my CR.

I know so much is dependent on the individual CR sit, but has anyone tried this tactic & if so, what was the resulting increase/decrease/wash in scores??

[Anonymous]

Even if it dings your score a bit it'll still look better when you go to buy your house b/c they are going to want you to pay all the old bad debt off if you're on the loan.

[Anonymous]

Do you have PFDs?  I'm sure you know that just paying them without a PFD won't make them disappear from your reports?

[Anonymous]

how soon will the mort happen? how old are the med colections?

you may do more harm than good by paying them before apping the mort.

[Anonymous]

Mortgage app won't happen til July. It's a VA loan, so technically credit won't have a *ton* to do with the rate, but we still want to look purty & realize that while the VA may approve with old unpaid collections, an agent may still want the collections to be paid before they'll work with us.

Med bills are all from 2003-2005. They have plenty of time till they fall off, and they are def still damaging score to some extent, esp since pretty much the only credit I have is bad credit. Before 2007, I had 25 collection or otherwise derogatory accounts & only one good account, a PIF SL from 2003. Now, I have two autos, pers loan & soon CC reporting, so there is some positive credit, but all very very new.

[Anonymous]

PS. Duh, should have said they will all be PFDs. I won't pay w/o PFDs.

[Anonymous]

---

ivyalmighty wrote:
Mortgage app won't happen til July. It's a VA loan, so technically credit won't have a *ton* to do with the rate, but we still want to look purty & realize that while the VA may approve with old unpaid collections, an agent may still want the collections to be paid before they'll work with us.

Med bills are all from 2003-2005. They have plenty of time till they fall off, and they are def still damaging score to some extent, esp since pretty much the only credit I have is bad credit. Before 2007, I had 25 collection or otherwise derogatory accounts & only one good account, a PIF SL from 2003. Now, I have two autos, pers loan & soon CC reporting, so there is some positive credit, but all very very new.

---

well it's a very short span. i vote pfd's for the ones willing to pfd/ the rest let the lendor condition to be paid at closing.

i say this not to advise to try get out of paying a debt. rather paying a 2003 ca could (and usualy does) trigger "recent collection activity" fico drops.

[Anonymous]

Yeah, I found that out the hard way by paying 4 from 2003-2005... that really hurt my heart

I am also wondering... would the drop in scores be written off during underwriting when I explain it is low b/c of all the recently paid collections? (those that I can't PFD)..

[Anonymous]

---

ivyalmighty wrote:
I am also wondering... would the drop in scores be written off during underwriting when I explain it is low b/c of all the recently paid collections? (those that I can't PFD)..

---

i wouldn't chance it. i know you said va, and this may not apply but programs are score driven. beleive me, they will make it a condition for items to be paid if that's what it takes to close the loan.

[Anonymous]

So you think even if I am able to PFD them all, the 18% util on a cc will drop my scores more than they will rise with the collections gone? (Just making sure i have it right... I'm so torn about how to handle this)