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 Scores
Profile Image

Question By
bbrey26

2 Contributions
1 Person Helped
Should I pay? PFD?
I am 26 and I have 2 (5 year old) collection accounts. I want to pay them off but only if they delete them off. I've been reading that collection agencies aren't doing PFD anymore. Does anyone know if this is true? I also read that the older the account on your report the less impact it has on your score. True? and If i do pay these accounts one is for $2500.00 and the other $700 how much will my score go up?
Im trying to improve my credit but I only have one victoria secret credit card and my school loans. Is this enough to improve my score. I have 593 TU and 587 EQX. I was also looking into getting another credit card to help out with my score but not sure which one I have a good chance of getting. any ideas or advice

Thanks in advance

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
3051 Contributions
2791 People Helped

Some companies still do the PFD, you'll just have to call and find out.  If they agree, get it in writing before you pay off.  Yes, it is true that the older it is, the less impact it has on your score.  No telling how much your score will go up, but it will be an improvement.  Please realize that if unpaid, these will fall off 7 years from date they went delinquent.  If you don't manage the PFD, they will fall off 7 years after they are paid.  Paid collection is still better than an unpaid collection.  Hope this helps.

Top Contributor
1884 Contributions
3676 People Helped

Any delinquent accounts will hurt

as far as i know, CA's will do a pay per delete, if it is part of a settlement. i.e. if you agree to a lump sum payment to settle the account,  As usual get any agreement in writting before paying. 
Even a current payment plan will help if that area.

as your stated, Yes, accounts over 2 years have less impact on your score, but any Derog remarks will still weigh heavily on your score no matter how old.  

I don't think you could secure any new lines of credit until you get those Derog's off your report.  IOnce you do, then you can look for new LOC's 

Good luck

Top Contributor

Reply by
Addison170

3051 Contributions
2791 People Helped

EddyTX, I'm curious about your statement that Derog remarks weigh heavily on your score no matter how old.  Where did you get that info?  As far as I know, remarks are not figured into your score at all, although when a potential creditor sees them on your report it is a red flag.  

2 Contributions
0 People Helped

how do you do pfd

i have 3 account in collection and no one wants to do pay for deleted 

Top Contributor

Reply by
Addison170

3051 Contributions
2791 People Helped

Then you'll have to just wait for the accounts to fall off 7 years after you've paid them.  It still hurts less than having unpaid collections.  Or, you can risk them filing suit (depends on statute of limitations for your state, you'll need to Google that) and just wait for them to fall off unpaid 7 years from date they went delinquent.  Sorry!

Results 1-3 of 3Results 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.