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I am just trying to clear all baddies on my report. My score is 650. There are some hospital bills, about 5 years old all in collections now. I was just thinking of paying them off or shall I negotiate with the CA. If I settle the debt will my score go down? There is some $70 to $100 balance remaining in them.
Hi abbey,
I feel you should pay the debts in full, if you can afford it. The accounts are very old and the collection agency may agree for settlement. But even if the CA agrees to settle the debts, it is likely that the debt accounts will be reported as "Settled" or "Paid as agreed", on your credit report. Even if you go for a debt settlement, you can request the CA to report it as "Paid in Full". This will have a good impact on creditors, when you apply for credit in future.
Hi abbey,
If I settle the debt will my score go down?
While you are trying to settle your old debts, you should make timely payments for all your current bills. This will prevent your score from going down. After all your debts are settled and you have built up a good credit record, your score will increase.
To know more about how you can improve your credit score quickly, visit the following link: http://www.creditmagic.org/score/increase-payingoff.html#29680