I'm a college student going through my first pregnancy and the bills seem overwhelming. I sorted out a personal payment plan for myself a little too late 2 of the 8 accounts are in collections. I've managed to widdle them down and should be done paying within the month. Will paying the accounts off give my credit a bit of a boost? (those 2 are the only ones one my credit report)
2006-08-05 04:07:16 · 6 answers · asked by I Shouldn't Have 2 in Business & Finance ➔ Credit
Unfortunately not, a paid collection account has about the same effect as an unpaid collection account.
Instead try to negotiate with the collection agency to have they remove the account before you pay them. Just make sure to get the agreement in writing. After you pay them you will have almost no power to deal with the collection company.
http://www.creditfamily.com/articles/dispute-inaccurate-information.asp
2006-08-08 15:16:42 · answer #1 · answered by CreditMan 2 · 0⤊ 0⤋
Ignore the d00b who said that this is going to hurt you 35 years down the road. Clueless!
OK, paying off items in collection won't hurt your score. At all. How much it is going to help? A bit, as you said. Since they'll still show up as collection items (but paid) youre score will take a hit for that. As time passes they will get older and your score will slowly rise. In 7 years they will drop off entirely.
Assuming you keep a good hold on your credit obligations from now on your score will steadily rise to the point where credit worries will be a thing of the past.
30 years ago, my credit was so far in the toilet I'd have needed a ladder to climb UP into the septic tank. I got my head out of my butt and started working on it. For the past 20 years I have had no problem getting credit any time that I needed it. Mortgage applications sail through and I always get the best rates. My score today is just a shade under 800 and creditors are beating down my door to do business with me.
It takes work, sacrifice, and time to clean up your credit but it CAN be done. Congrats on getting a good start on yours! The results down the road will be WELL worth the effort!
2006-08-05 11:21:02 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The longer its been since there was activity on the accounts, the less impact paying them will have on your score. Based on your question, it appears the accounts have had activity in the last couple of months. (Payments count as activity). In that case paying them of will help your score. The only way it could hurt is if there had been no activity for a few years. In that case, payments could make the debt appear more recent than it actually is.
2006-08-05 18:10:30 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Your score will go up if you can convince the collection agency to stop reporting the debt to the 3 credit bureaus. Write them a deletion letter and wait for them to respond before u pay them. It works and I did it and me score did go up. Use this sample on the link below. You fill in the blanks!
2006-08-05 13:13:24 · answer #4 · answered by mschaka77 2 · 0⤊ 1⤋
Hi there.
Paying off any bill's will help you out in time.
One's you do pay them off,make sure you write them a letter and find out if there is any more on them so it will be pay off for good.
If you don't do that,there could be more on them with out you knowing about it,ok.
Every thing take's time,nothing happen's over night,always remember that.
Yes your credit score will change in time,paying off bill's is a good thing to do.
Just keep doing what your doing and thing's will change for the better with time,always does.
Good luck and take care.
Sharon.
2006-08-05 11:31:49 · answer #5 · answered by sharon t 2 · 0⤊ 0⤋
no,they get worse.they remain there for years,if u buy car 35 years down the road,they will not let u.u got bad credits.
2006-08-05 11:11:35 · answer #6 · answered by mak_nit_crimson 4 · 0⤊ 2⤋