I have a 2 year old collection account for less than $150 on a Bellsouth utility account. It's not that I can't afford that small amount, but I left college and my roommates never shut the phone off. They always told me they would pay, but you know how that goes. Anyway, I've been told that a small collection like that amount does not effect lenders credit decisions as they often overlook anything under $200. Is it to my advantage to pay this off, or leave it gradually dissolve? How negative a impact does a small collection to a utility company play on your credit score? If it is better to pay it off, how should I handle it, and what, if anything, must I do after I pay it? Thank you for your help.
Try disputing it through the CRA's before you consider paying it. Most legitimate collection entities will refuse deletion in lieu of payment pursuant to their contracts with the credit reporting agencies.
