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 Auto Loans
Profile Image

Question By
Ammie123

0 Contributions
0 People Helped
Will paying off accounts in collections help my chance of getting a car?
My situation is this my credit score is in the 400's and I am working towards fixing it so can get a vehicle. This would be my first time doing so by the way . I've got 2 credit cards and some accts in collections. Well I've read several articles but some say that while paying off sed accounts helps your credit score it doesnt help your FICO which is what most lenders look at. Fixing my scores would be great but my main goal is to help my odds of getting a car. Id really appreciate some input since i have no idea wherr to begin this process. Or if whether or not it'll just be a waste of my time. Thank you

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
1008 Contributions
557 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Most of scoring models dose not distinguish between paid and unpaid collections, only two that I know of are Vantage Score 3 (used here) and newest FICO 9 that came out last year, but neither one aren't  widely used by lenders.....

Paying your collections won't boost your score, however, it would look better when the lenders manually review your credit files. But if your score remains at 400s or even if you get it upto mid 500s? I doubt paid collections would make much of difference to the lenders.....

You need to try get them removed from your report, ask for "pay for delete" deal from collection companies, get it in writing not just verbally, that they will delete it after you pay the agreed amount. If you do call them? You need to mindful of what you say, most likely the call will be recorded and they could use it against you in court later. Do not promise you will pay or even take ownership of debt.

Top Contributor
5038 Contributions
1136 People Helped

JohnnyRain hit the nail on the head, great answer. I have been watching your posts JohnnyRain and you know your stuff, it is great that you are here to share your knowledge to help others. I hope you stick around. I do my best to get on here as often as I can to help others as I know a little advice can really help a person avoid years of problems.

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.