We are building a house. I found out I have a $105 collection that has apparently been on my credit for almost 6 years. I called them to pay it and they were EXTREMELY rude. I asked if I paid would they remove the mark, still rude and said no. I didn’t pay it. Trying to decide my best course of action. Leave it and let it go away soon? Pay it and possibly (hopefully) bring my score up a few points?
@smalexander1, thanks for a question that I am sure many others share. Most times, paying a debt in collections won’t affect your score because the collection effort and late payments are still on your credit record even if the debt is marked paid. You’ll find some great info here: Should you pay a debt in collections?
Sorry to hear you’re dealing with debt collectors. They’re not the most fun bunch, especially when they’re rude for no reason.
A few things to consider when you’re weighing whether to pay it off:
- Collections accounts (like most derogatory marks) will fall off your credit report after 7 years. If you aren’t being hounded by then and the mark isn’t getting in the way of receiving any new forms of credit, you could run the clock. Note that you would still technically be on the hook for payment, but creditors wouldn’t see it.
- Some new credit scoring models exclude paid collections accounts. So that alone could be an incentive to paying off the account.
- If you do pay it off, you can likely haggle a settlement for less than that $105 amount. Debt collectors pay pennies on the dollar for these debts so you have some wiggle room here.
The article Des linked to is a good resource, so be sure to check that out. At the end of the day, ask yourself whether this collections account is getting in the way of your goals and how you might benefit from paying it off.
Hope this helps!