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TheFate

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Accounts in Collections?
I read once you have an account in collections reported on your credit its best to just let it eventually fall off over time vs paying it in full because this does not help your credit, unless its negotiated as 'deleted' which most agency's wont promise in writing. Is there any Truth to that?

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It Depends - I think

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So - This is just my opinion, and based slightly on my experiences. 

One question would be - how old is the collection reporting? If you check your report - It will tell you as of what date is expected to fall off. If it is going to happen in the near future, I would just let it fall off myself. I actually had one that I found out the day I sent a check to them, that it was going to fall off in a week. I cancelled the check, and the item did fall off as of the date my report specified.  If it is further in the future - It would be in your interest to pay it off if you can. Even if it is not deleted as an account - It will show as paid in full, and be removed as a Derogatory item on your report, and your score may increase a little as a result - more over time. Anyone who pulls your report won't then see it as a Derogatory item, but just as a paid off collection account - which does look better than an open collection. All Items that I have paid off that were in collections have ceased to show up as a derogatory item on my report. 

If you are rebuilding, and you have these collection items that are far from falling off, it would be to your advantage to pay them off if you are able. I myself also always contact the creditor to either A: get it in writing, so that I can then pay it off in writing - (Never agree to any payment plan on the phone - just ask for them to send you info, as agreeing to a payment plan could start the clock again on the debt) or B: see if they would offer you any sort of lowered payoff amount - again, don't agree to it on the phone, but ask them to send you something detailing the payment amount they are offering. 

Hope this may help you!

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These are actually all the things I read you're NOT suppose to do. What I've read is that by paying off any accounts in collection can actually hurt you more than help you. I'm just not sure how much truth it holds.

So what you're saying is in your expirence it helped to pay them off? Where do you see when the accounts going to fall off?

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