Paying off collections

How old are your debts? Are they close to reaching the statute of limitations for your state for falling off your credit report. Check your state statutes. Maybe if your debts are fairly new you could work out an agreement with the creditor to note on your account that it was paid in full and reage it so it shows current. If you take that route make sure you get it in writing. Unfortunately right now you already have a negative remark on your credit report because it is now listed as collections.

Good luck, let us know how it turns out.

ladybug

I recommend validating the debt with each collector before payment.Send this letter certified return receipt mail.The third hyperlink in my signature has a letter you could use as a template. It is at the bottom of my post. A paid collection is scored the same as a unpaid one. If you are going to pay them,try to work out a written agreement stating that they will delete the accounts from your credit reports in exchange for payment.Make sure they sign it before you pay them.

I am in the process of doing the same thing, I just paid off Wachovia, the debt was 2 years old and it was a settlement, but they reported it as being a settlement paid in full, so it went from negative to positive cause my score went up a few points. I have a few more old collections to pay off, some will report paid in full, and some will report settled, but either way as long as its paid off, because i know with time and my on time payment with my credit card i have my score will go up, I would prefer all my accounts being paid off instead of being opened and not paid at all. I have 4 that will remain unpaid because the statute of limitations will run out in 2008, I want to buy a house sometime in 2009