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Hey folks,
Does it really make sense to pay off old collections? Does it improve your credit? I have heard more than once that paying off collections don't really do much to repair your credit.
Is it true that paying off collections can be a waste of time when it comes to credit repair? and if so, what's the point? Are there any benefits at all, or is it best to just wait for the statute of limitations to expire?
I need help as I want to fix my credit but don't want to waste my money. So, please advise.
paying off collection agencies
Hi Paxton,
It is always better to pay off your debts. Once paid, the accounts are supposed to reflect as "Paid". Though this won't do much good to your score, it is better to have "Paid accounts" on your credit report, rather than having unpaid accounts.
Yes, paying on old accounts can lower your score initially, but with time the negative imp-act will lessen. You can also try removing the negatives through the "Pay for delete" (PFD) agreement.
Thanks,
Aaron
paid charge offs still look bad on your credit but if you let an unpaid debt go, they can get a judgment against you. judgments can stay on your credit for 20 plus years.
settling and paying a charge off in full are relatively equal
pay for delete is better than paid in full
deleted because of dispute is best cause it is free
It may be good to wait and negotiate a settlement after the SOL expires. You may be allowed to settle for a lower amount and still get the item delete. Keep your eyes and ears open as many CA's file suit in the last month of the SOL.