Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
no9to5

2 Contributions
2 People Helped
Paying off old credit cards
I have several old credit cards that went into collections. I'm now in the position where I can pay these off. After reading all that I can, I know they cannot be removed. My question is, if I pay them off, would it not reduce my credit card utilization, therefore raising my score. Most are under $900 with 1 being around $1000. Any advice would be greatly appreciated.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1136 People Helped

Did they go to in-house collections or were they sold to separate collection companies? If they are in-house collections and the only negative account you see is the original credit card account, then yes, by paying them you will reduce your utilization and it will help your scores and it will also help prevent the accounts from being sold to a separate collection agency which may also pop up on your reports.

__________________________________________________________________________________________________________________________

If there are separate collection accounts already showing in addition to the original credit card accounts, then a simple dispute would get the original credit card accounts marked as a zero balance.

______________________________________________________________________________________________________________________

Another plus with paying them is if they are updating frequently it will prevent that and if they are still within the SOL to be sued, then you would prevent yourself from being sued for the debts.

______________________________________________________________________________________________________________________

It is hard to get PAY FOR DELETE AGREEMENTS with original credit card companies, but it is easier to get PAY FOR DELETES with collection companies.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.