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Will paying off / settling 2 collection accounts lower my scores?


CreditMedic
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I have a Newport News account for about $1,100.00 that was charged off. It has a Date Reported showing 12/05 and a Date of Last activity as 12/01. They / the CA sent me a settlement offer for half. I willing to pay this but can't afford a hit to my credit scores if it will lower them because bringing the charged off account current.

The other is a Medical collection with R & R Recovery for $500.00. Dated Reported 09/05, Date of Last Activity 02/02, but is reporting as having Opened in 01/03. Once agin, I would be willing to pay this but they said they will only mark it as PAID and will not remove it. As I said before, I can't afford a hit to my credit scores if it will cause it to be lowered because of recent activity.

Any suggestions, or what's your take on this. Will it actually lower my scores if I pay them?????

Thanks

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I don't think it's possible to predict the actual affect on your fico score as far as instant online approvals etc. are concerned. However, if you're trying to get a type of loan that requires no "adverse" credit or unresolved disputes, then you would have to pay those unless they can be removed. Examples would be mortgages and student loans. Your interest rate may be affected, but you would be comparing that with no loan at all if this is a requirement.

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I have a Newport News account for about $1,100.00 that was charged off. It has a Date Reported showing 12/05 and a Date of Last activity as 12/01. They / the CA sent me a settlement offer for half. I willing to pay this but can't afford a hit to my credit scores if it will lower them because bringing the charged off account current.

I would send them a DV.

The other is a Medical collection with R & R Recovery for $500.00. Dated Reported 09/05, Date of Last Activity 02/02, but is reporting as having Opened in 01/03. Once agin, I would be willing to pay this but they said they will only mark it as PAID and will not remove it. As I said before, I can't afford a hit to my credit scores if it will cause it to be lowered because of recent activity.

The way this is reported is wrong. This sounds like it is an incorrect TL. You can probably get the delete here pretty easily.

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