I have 2 collection accounts on 2 of my credit reports 1 from 2004 and 1 from 2006, these are small amounts, which I have no problem paying them. My question is will this help my credit score or hurt it more, I am trying to fix my credit so I can purchase a car in about 6 -8 months. Thank You
I had a cc that reported, I paid for less than full balance whatever it was they offered to settle, end result they marked as "paid less than full balance" updated the TL and tanked my score about 50 pnts which will stay on an extra yr and a half. This was crap1, you may try pfd, I didnt know about that at the time, but make sure you get it it writing before you pay jack.
You are always better off paying the debts; however you should try to negotiate a "Pay For Delete". Ask the collections agency to NOT report the TL if you pay in full. Many times they say that they cannot, but it never hurts to ask. Also, verify the "Date of First Deliquency", this is the date the account first became deliquent, and never was brought current. This is the legal date for reporting (on credit reports) for the length of time it can stay on your report. Also verify the date of "Charge Off" for reporting purposes also. If you plan to purchase an auto in 6-8 months, you should take care of these debts, most lenders look more favorably on debts that were paid in full. Your credit score is going to be hurt by these CA accounts, and you could try to dispute them directly with the CRAs once you have paid them off. Again, you might get lucky.
