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tlm12123

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Paying off closed credit card accounts. Pay off or let fall off?
I have 4 closed credit cards that have been sent to collections. I have paid off 1 of the 4. My question is does paying off the debt increase my credit anymore? Or is it better to just wait for it to fall off my credit report. That money can be better spent if it will just sit there on my report regardless if its paid or not.

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It depends on what you want to do with your credit.  If you are trying to improve it; then getting all your negative items removed right away is the best method...... If you don't plan on making any major purchases for a while then let them stay on untill they fall off.  Also if you are going to pay it off; try to negotiate a "pay for delete" agreement.  This is when you agree to pay the full amount in return for the collections to be completely removed from your credit file. It they agree, make sure you get that agreement in writing before you send any payment,  this method has about a 50/50 success rate.

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You used the credit cards to make purchases for your benefit so morally you should pay off the debts.  Otherwise, you likely shouldn't apply for credit if you aren't going to be a responsible credit user.

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