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kumarhatti

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How does it affect score when credit card closed with balance?
Hi all,

My amex credit card got dismissed by the vendor with 2.5k balance in it, so it went to collections in Nov 2015 (collections did not report on my profile though), they gave me a payment plan to pay 100/month, so it will take another couple of yrs to pay back everything. My question, how will it affect keeping that kind of balance on closed account? I can pay it off right away, but if it does not affect my score or my credit worthiness to other lenders, then I will keep the plan. I had about 13k cc outstanding, i paid of everything except this one. My plan is to keep good credit for another few months so it will increase my score and apply for auto loan refinancing bcoz i am paying high interest. So, question, is it okay to keep the payment plan or by paying it off, does it help increasing my credit score?? Any help will be appreciated...
thanks

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I dont think that it will change your score if you pay it off now...  What is done is done.  The only good thing is that it would show as paid.  But your score will not change unless you stop paying it. 

Now as far as getting a car... how it might affect that loan is it will change your debt to income ratio.  So that might be something to think about.

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