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Shmily0699

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Paying off old collections?
Hubby and I are going to try to buy a house in about 7 months. He has 2 old account on his credit report from 08/2011. Total for both is around $700. If we pay these, will it have a marked effect on his credit score? I have one on mine from 11/2010, for about $500. Thoughts on those?

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Try to get a "pay for delete agreement" if possible. Do some reading on that. It is best to get collections completely removed rather than just marked as paid. Paying these accounts off should help you with your mortgage loan as most mortgage lenders will not issue loans with outstanding collections, so getting them closed and marked as paid may be adequate, but leave that as your last resort if you cannot get a "pay for delete". If you are unable to get a PAY FOR DELETE, you should get this taken care of as soon as you can to let some time lapse before going to get the mortgage. If these collections have not been updated for a while, paying them will cause them to update and that will ding your scores as the collection will look fresh to scoring systems, that is why I am saying to give yourself some time to let the damage subside and scores rebound.

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