slynbrown

Should I Pay a CA not Reporting on CR?

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I have a small phone bill about 3yrs old that I have not paid. The item has been transferred to two different CA that has showed up on my CR. I have been lucky and I disputed them both and they have came off. This is now the 3rd CA and I want to pay for it so it wont keep popping up on my CR but so far this Collection Co NCO has not reported the item. They sent me a settlement ltr to pay $117 which is a 50% discount. Should I pay the item and is there some type of disclosure or letter that I can send with the pmt saying that once the payment is received they cant report it or somthing like that ?

PS. I am looking to buy a house soon and I dont wont any new items popping up.

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That's really a great question. I always figured if you've disputed it though, that paying it would only validate it. Basically, if you pay it than it may pop up on all three CR's as a "paid collection."

Does this also harm one's ability to attain a decent rate mortgage? To have a paid collection on their CR's? I was told by some that it won't hurt your ability to attain a mortgage as much as if you had an UNPAID collection. In general though, I know paying a collection acct does not improve your credit score. I've tried it in the past (before I came here).

Anyone else?

Elyse

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I guess that is my question. If I pay it will it item be reported as a paid collection after the payment is recieved or if I dont pay it then it would be a slight chance that the item will be reported as a unpaid collection. Or could I put some type of disclaimer on the payment to not have the item reported on my CR. Does anyone have an answer?

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First of all...don't ever pay any third-party anything until youv'e properly vetted them through the debt validation process.

Once you have done that and you are ready to settle; get a written agreement. If you are worried about how this might be reported on your bureau put a stipulation in the agreement that they will not report the item at all (if they aren't reporting yet than they probaly won't mind not doing so after you've paid).

Most lenders will not grant a mortgage with an unpaid collection account on your history (or will drop you int sub-prime paper)...a paid collection is only an issue for lenders than only rely on the "I Love Debt" score (FICO)...if you work with a lender that does real underwriting it won't be a problem at all as long as you've paid your rent or current mortgage early or on time for at least the past three years and you have no issues that are less than three years old/ongoing such as an unpaid collection.

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