collections vs new credit

[Countryboy1]

Thanks for taking the time to read this in advance.

 I am in the process of rebuilding my credit and i feel like my credit score has peaked fo the time being. I currently have 2 collections on my account still reporting every month ( Verizon Wireless $1168.00) and (Conns $1054). Neither one is due to fall off within the next 5 years. So my question is if i pay the balance in full with this help boost my score ? These are my only 2 Baddies, I have 2 CC and Auto loan in good standings. ANY ADVICE IS GREATLY APPRECIATED

Curent FICO Scores

TU 644

EQ 634

EX  624

GOAL 680  by 6/2020

[Remedios]

Hi and welcome to the forums @Countryboy1 

Your score will gradually increase after collection accounts are paid off because updates will stop. Each update makes delinquency "appear" newer, so your scores remain stagnant while they are updating.

You should not expect to see large and immediate gain from paying collections, that happens over time. 

With Verizon account, you may want to call them and see if they will recall account from collections in exchange for payment made directly to them. 

[simplynoir]

With CONNs it would depend on whether the collection is still with them or if they sold it off to a debt agency. Check your credit report and depending on who still holds the debt contact them about doing a PFD. If it's an outside agency be prepared for the possiblilty for the account to stay on there even if it is PIF.

[Anonymous]

You should check out the rebuilding forum.

First, as stated, find out if the debt is owned by the OC or the DC. If by OC, have them pull it back from collections upon agreement to pay. Reason: if the DC's authority is terminated, they must remove the collection from your CR.

If owned by the DC, try a PFD. Just paying it without removing it offers no score benefit I am aware of, though it can cause a drop, if it wasn't reporting and then is brought current in reporting due to being updated to "paid."