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regenesis

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Is It Better To Pay Off A Larger Collection Account Or A Few Smaller Ones?
Hello,

I've gotten back to a place where I can manage to pay off some accounts that went into collections after I lost my job. I'm really trying to get my credit back in the same neighborhood where it was previously, but like most people, I don't have unlimited funds to pay off everything at once.

My choices are to either tackle paying off one larger account that's in collections right now or paying off 2-3 smaller ones with balances of $500 or less.

Which has a greater affect on raising your credit score: less total accounts in collections or a greater reduction in overall debt that's in collections?

I appreciate your help!

Thanks,

Regenesis

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While a lower number of accounts in collections would be best (like NONE, but you already know that lol) the fact that there are any is going to hurt for a while, as in 7 years, which is the maximum reporting time for most debts.  Potential creditors will pay attention to a recent history of regular payments on these accounts because it will show that, while circumstances prevented your making payments for a while, you did catch up and pay them off.

You might try negotiating a settlement on these debts or a "pay for delete" agreement so that, for paying the debt, it is removed from the credit report.  Do these negotiations via writing so that you'd have the proof that this arrangement was made.

Hope this helps.

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