Should I Pay Balance On Collections

If you're interested in paying, call the collection agencies first and offer them a deal:

You pay the collection
They remove from your reports

Get it in writing if they agree. Don't give them your phone numbers.

It may help your score a bit by paying, but certainly not as much as having them removed.

gilmores

 

Re: Should I Pay Balance On Collect

If they are more than a year or two old, paying them will do pretty much absolutly nothing to your score. That is unless you fall under one of these two situations:

1: You have nothing else on your credit report, and these are old accounts which will at least give you some account history.

2: You have a total of $572 (I came up with this from the two accounts added together, just as an example) or so in credit so your debt to credit utilization is showing as 100%

So unless you're applying for a mortgage in the near future, you have no benefit from paying. Yes, offer the collectors a payment in full asking them to delete the tradeline. I would go about it in a simple way, write a letter stating:
I am aware that a paid collection is just as bad as an unpaid collection showing on my credit report. I would like to pay the debt you claim I owe in full and in return your company agrees to delete the tradeline. If this is agreeable, sign the bottom of this letter and return it to me. I will give you 30 days to respond, at which time I will give this offer to another creditor.

This way, you let them know you don't feel like paying if you get nothing in return, and that you will just take this offer to someone else and spend the money that could have gone to them elsewhere. DO NOT call them up, do everything by mail. If you call them, even if you have your number blocked, they still may be able to capture your telephone number and then start calling.

ChrisB

 

Re: Should I Pay Balance On Collect

Bonnie, Ive come across a couple of your posts, and I don't mean to sound bitchy, but you really need to read a LOT more here than you have. You can't start mailing out letters if you dont even know what youre doing. You wont do yourself (or anyone else) any good.

Seriously, I'm not trying to sound like a know-it-all or anything... heaven knows I didnt know SQUAT when I first got here. But, I read my eyes out for about a month before I even started posting, and now I've taught myself so much that I actually feel proud of myself for the first time in years.

It'll do you so much good to read and learn and do things the right way the first time. it also gives others a little more credibility when we send out our letters.

please read the FAQs, the acronym glossary, and do some searches on 'settlement', 'settle for deletion', etc. Read and learn. you'll be so proud of yourself.



good luck.

 

Re: Should I Pay Balance On Collect

Ok. Do what you want, but let me just say one more thing: If youre not willing to utilize the search function on here, you'll be missing out on a treasure chest of priceless information.

I'm on dialup, with a not-so-great computer, and I firmly believe its worth every minute each search takes. sometimes it takes a page 2 mintues to load. it sucks, but i've found such good information. In fact, I've found much more useful info from reading past posts than what I get from asking questions outright.

Now, sometimes just coming out and typing 'you really need to read more' can look offensive in print. I did not mean to sound harsh. I'm the last person to start crap on this board. its just a fact. Read more and you will learn more.

Here is one more fact that may sound unkind: (Sorry)

From my experience here, no one is going to walk you thru every detail of your credit repair, especially if your questions have simple answers that can be found by reading a little. You must be willing to take some responsibility and learn a lot of this on your own. A lot of the decisions you make will be up to you, because every situation is so different. you'll get many different opinions, some bad info, some good, and YOU have to decide "do i want to take this advice or not?"

sorry if i sound mean. its just the truth. someone had to point it out to me when i was new here.

If, after you read a bit and learn the basics, (terminology, etc.) and you still have questions, by all means, ask them.

again, good luck.