Whats up everyone! 1st Time poster here! Alright, I have a FICO range of 617-631 w/ all 3 CRAs. Debts are $36K in student loans, $3700 in car loans will pay off in 8mths, 1 CA account of $405, about 3 settled CC accounts. If I pay the CA amount in full, will it be a (+) on my FICO, OR if I settle the amount for less ($270) will it be a (-) on my score. I just got in the 6s and want to stay. You guys here are really inspiring. I, too, will be a member of the 700 club one day! Good luck to everyone in their Credit Reparing efforts!
It has often been reported here that collection accounts that appear on your CR's (whether paid or not) are not helping FICO Scores
The best resolution is to remove it entirely from your report. A collection will have the same effect on your score whether it's paid in full, unpaid, or settled. Having an unpaid collection will make it difficult or impossible to get new credit with certain lenders, including most mortgage underwriters. Those same underwriters might consider doing business with you if it was paid.
If the account has been open for many years, removing it entirely will definately lower the FICO Score because the average age of all accounts will be less
