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dshenne

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Is it better to pay off a credit card or a collections?
I will soon be able to pay off a credit card with a balance of 1200 but I have something is collections for 2000 that I could possibly pay off instead. Which is smarter to pay off first and why?

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Hi

Remember that paying off  a collection account WILL NOT remove it from your credit reports. It will just be shown as paid instead of unpaid and that will look a little better but the damage is done and will stay. Some people claim to have success by getting a PFD or "Pay For Delete". I suggest that you look this up. Just make sure to get it IN WRITING before paying. What this means is that you make a deal with the collections agency to remove the collections account from your credit reports in exchange for payment. This does not work all the time though. Research it.

If your credit card is in good standing I would do whatever you need to, to make sure it remains in good standing.

Not sure what to tell you beyond this, hopefully someone with more experience can help you with your decision.

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