usmgirl25
Date: Tue, 07/13/2010 - 11:01
Quote:If you pay off an account on your credit report that is in
Quote:
If you pay off an account on your credit report that is in collection. Does it help your credit score at all? |
You can request the collection agency to agree to a "Pay for delete" (PFD) agreement. With the PFD, the negatives against the account will be removed from your credit report. You will get sample PFD letter at http://www.debtconsolidationcare.com/letters/pay-for-delete.html . Get both the payment agreement, and PFD agreement in writing as proof.
If the account that you're paying is an old one, the chances are
If the account that you're paying is an old one, the chances are that the trade-line balance for that account will show 'zero' as it's typical for old charged-off accounts which have gone to collections. Then, paying off the account will not have any impact on your credit score.
Moreover, there's a chance that it might actually hamper your credit score. The reason being when you pay off an old account, the date of the payment is shown against the account which would be more recent than the account and may stay in the credit report for a longer time.
Lastly, you can negotiate with the collection agency to report the account as 'paid in full' or go for 'pay for delete'. If you convince the agency to sign a PFD or Pay for delete agreement, the account will be completely erased from your credit report which will help you to improve your credit score faster.
on my credit report the account reds ...transferred to another a
on my credit report the account reds ...transferred to another agency.. which is the collection agency that I just paid off. in the letter I got the company to send me they said they would report it as paid in full