Debt collection payment and credit score
Q: I have $530 outstanding with debt collection agency from my old Discover card account. They offer me to settle for one time payment of $447 or instead, I can make 6 monthly payments $104 each. What is better for my credit score?
A: Neither. When collection is paid, the account status changes to Paid Collection which really can make your credit go lower for some time. In best case, paying debt collection account no matter which way, will not change anything about credit scores. Try offering them something like $400 which is close to 75% of what you owe, for deletion of this record from your credit report. This is called Pay For Delete and you will find this debt settlement letter helpful.
Fri Sep 3, 2010 11:09AM | Copyright: www.bad-credit-advisor.com | More in Credit Score Help | Comments (0)
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