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Question about paying old debts


ms_pammy
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Hi All! First let me say Im so glad I found this site:)

We are attempting to higher fix our credit and higher our score so we can purchase a house,(hopefully within 6 months) so I pulled our credit reports and on mine under Adverse Accounts I have 4 outstanding accounts that total about $650.00. 3 of them have been there since 2002 or before and 1 in 2006. So i was just going to pay them and be done but in my reading I understand that this could hurt my score. So my question is what is the best way to take care of these without hurting my score? Pay them? ask for validations? or other?

Thanks so Much as my head is spinning with all this credit stuff..so much to learn!! LOL

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Hi All! First let me say Im so glad I found this site:)

We are attempting to higher fix our credit and higher our score so we can purchase a house,(hopefully within 6 months) so I pulled our credit reports and on mine under Adverse Accounts I have 4 outstanding accounts that total about $650.00. 3 of them have been there since 2002 or before and 1 in 2006. So i was just going to pay them and be done but in my reading I understand that this could hurt my score. So my question is what is the best way to take care of these without hurting my score? Pay them? ask for validations? or other?

Thanks so Much as my head is spinning with all this credit stuff..so much to learn!! LOL

From what I've read, paying an old collection can hurt your score because it can change the Date of Last Activity that the creditor or CA reports. FICO scores look at the DOLA, not the DOFD, when determining points awarded or deducted from your overall score. Again this is from what I have read, a 5-yo unpaid collection isn't going to have as much a negative bearing as a brand spanking current paid collection. MyFICO.com spells this out if ya check out their site.

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Thanks for the start everyone.

2 of them are old utilities and the other 2 Im not real sure what they are for probably medical....they are now with NCO financial and NCO inovision. They all are probably from when I lived in IN..I have now lived in Fl for 5 years.

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I have one account that was charged off by the original creditor.

AT&T Universal

Balance Amount: $782 $782 $782

Monthly Payment: $61

High/Limit: $3,900 $3,900 $3,900

Account Status: Collection Collection Collection

Past Due Amount: $650 $650 $650

Comments: LAST REPORTED DELINQUENCIES: 12/2005=R5,11/2005=R5,10/2005=R4 CHARGED OFF ACCOUNT ACCOUNT CLOSED BY CREDIT GRANTOR LAST REPORTED DELINQUENCIES: 11/2006=R ,10/2006=R CHARGE OFF ACCOUNT CLOSED BY CREDIT GRANTOR CANCELLED BY CREDIT GRANTOR

I have not been contacted by a collection agency.

I would gladly pay the full amount.

Do not want to wake a sleeping dog if there is no point in it.

I have two settled for less than full amount on my report now that I am trying to remove but it's very hard.

Questions:

1. Should I contact AT&T

2. If I contact them what will paying them do the the credit report? Will it help very much? I am hovering at 590 plus and minus now.

3. Should I pay in full or in part and what is the difference of the impact on the report?

About the two settled for less than full amount ... how damaging is that. How much more damaging would three be than two? In other words will it really help that much to pay in full considering that I already have two settled for less than full amount.

My appreciation for your response is offered in advance.

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