shawnb74

Newbie question on Collections! pay or not to pay

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Hello all!

Newbie here..

Trying to get the score up, currently about 600or so. I have three collection accounts on there. Tried to dispute, came back verified and all ok (as in they belong to me). Contacted Portfolio with a Pay IN FULL for delete, they said they do not delete. Tried to email a higher up, no response yet. I guess my question is this... How many points will a score increase with a Paid in full VS a Settlement? I have the $ to pay them off, but want them removed from my credit report so my score increases.

I was looking around and thinking that in the long run, a Paid in Full would look batter to future creditors vs a settlement.

Thoughts, advice?

Thank you all so much in advance :)++  :)++

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Hello all!

 

Newbie here..

 

Trying to get the score up, currently about 600or so. I have three collection accounts on there. Tried to dispute, came back verified and all ok (as in they belong to me). Contacted Portfolio with a Pay IN FULL for delete, they said they do not delete. Tried to email a higher up, no response yet. I guess my question is this... How many points will a score increase with a Paid in full VS a Settlement? I have the $ to pay them off, but want them removed from my credit report so my score increases.

 

I was looking around and thinking that in the long run, a Paid in Full would look batter to future creditors vs a settlement.

 

Thoughts, advice?

Thank you all so much in advance :)++  :)++

 

With the new FICO scoring model paid is as good as gone.  PRA has a hard line policy of NOT doing PFD so you won't get that from them.  Whether you pay them or not depends on how new this debt is.  If it is going to drop off in less than a year I would wait.  If it is several years or more paying it may be better while you show a good debt management and credit history to offset past problems.

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That the way i was leaning, just hoped there was a way to get it off. I’m going to be buying a home within 12 months so paying sooner than later looks like the best route to take. I should pay asap it looks like.

Thanks!

 

The sooner you pay it the sooner you will see an improvement in your score(s).  Most under writers will not do a mortgage with outstanding debt you can be sued for and worse:  once these creditors know you want a mortgage you lose your leverage in negotiating settlements.

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Portfolio is a machine...any sort of request that falls outside of their SOP is not going to happen...you might as well try negotiating with a cement block.

 

Portfolio seems to bee pretty sue happy so if the debt is more than a few hundred dollars (perhaps even if it isn't) I wouldn't wait too long.

 

Bottom line is - if this is your debt and you owe the money and you can afford to pay them it's probably better to just go ahead and pay them...just make sure that you have proof that the debt was paid in full.

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