jackie100

Does paying off collections increase your score a lot?

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I agree. Always do everything in writing. CA are notorious back stabbers. Never give them deniability.

P.S.- Starting and maintaing a Corporation is more expensive, but it is off set by dramatically lower taxes (if set up right). Did you know that you get to choose when you pay your taxes? Also that new car can be "bought" by the corporation, then counted as an expense,thus lowering your taxes. And your annual meetings can be in Aruba and that can be classified as an expense as well. The list goes on...Make sure you consult a professional. I wish you all success in your endeavors, no matter which route you choose.

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What if I pay all the collections off though? Then I have a 50/50 chance right? Just with a higher interest rate right? If everything shows paid and in order.

Regardless if I'm buying the car or not I still want to clear this mess up and pay it all off...

Most of the stuff will drop off next year, but one of the suckers won't drop off for 2 more years. I don't want to wait that long I just want to take care of it now so I can start rebuilding my credit.

Re-read my post...50-50 chance of being denied with a collection regardless of paid or unpaid. Since you're going through Crap1, it depends how much you get approved for, but Crap1 may include a stipulation that it be a used car only.

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I was reading the tips on the front page of the site and it said to not ever call them but to only send "pay for delete" letters in writing. Personally I would rather call because it's faster... Is it really bad to call them?

So many people here have made verbal agreements with CA's over the phone and were subsequently burned. Call if you want, but don't be surprised when you pull up your CR's months later and see tons of paid collections listed.

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Hey Guys,

Let me first just say, this board has been such a help to me..i have learned sooo much!! THANK YOU EVERYONE!!!

Now..so far, i have managed to get my experian CR down to 5 negative entries from 14...I got rid of all of the collections!! Did this by waiting until the OC withdrew the account from the primary CA and assigned it to the secondary CA..i then contacted the secondary CA and arranged a PFD before it was even reported..I did this the first time on accident, and then used it to my advantage...ALL COLLECTIONS GONE :) What I need to know now is, considering the fact that I have done this in the past 6 months, and knowing that removing collections from my CR will boost the score, I am wondering how long, approximately, this will take. Unlike some on the posts on this thread, my collections accounts have been DELETED, and not simply labeled as PAID..Anyone have any ideas, based on their own experiences?

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"...wondering how long...this will take..."

No one can answer this. The time frame you are asking about is like many credit report questions. It is dependant upon other data in your file, which is specific to you and you alone. I didn't read the entire thread, but I can see your good news; that your derogs are gone, not just paid. Do you have current, on-going, positive accounts? You must have those to get a decent score. A good mix of accounts is important also. You need both revolving and installment accounts. If they are new, you will see increases as they age. Credit scoring programs like to see years of positive payment history and accounts (like a mortgage) which indicate stability. High scores are built slowly over many years. Other than using the AU method, there is really no way to shortcut that process.

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Thanks for the answer Ahntara! I do have positive revolving and installment accounts, 6 of them now, including my car payments which have been on the report since 10/04, so my balance is 6 positive and 5 negative which I am stuck with because they are a result of late payments :( All payments on all accounts have been on time since Feb, and I will keep up the timely payments from here on out...Boy, messing up in college is hard to recover from but I am absolutely encouraged!! It is a slow process, but whenever I get ready to buy a house, all of this will be well worth it!

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