Should a collection account be paid in full, or paid in payments, for a better credit score.?

I have a few new (within 1 year) collection accounts that need to be taken care of. I have heard that paying off old accounts in full will negatively affect rating, so I am assuming that paying off the newer ones first will have better short term results in my credit score. I know from dealing with up-to-date credit card accounts, that a payment history, making regular payments on time, is better for my rating. I have also heard that a payment history on accounts newer than 6 months will hurt my score, while payment history over 6 months will be good for my score. SO...how should I pay off collection accounts? Is it better to spread out the payments over 6 months or more, or better to pay in full? I am looking at being able to get a mortgage in the future. From what I have read, paying collection accounts just prior to applying for a loan is a bad thing. Although my report will show paid in full, it negatively affects the credit score. Trying to plan ahead, for better results.

Should a collection account be paid in full, or paid in payments, for a better credit score.?

For a better credit score, a %26quot;pay to delete%26quot;, or %26quot;payment for deletion%26quot; is your only option. Whether you make payments or pay the whole thing off, unless it%26#039;s removed from your report, that account will still reflect negatively. I posted links to a website that explains how to settle delinquencies to improve your credit score.

Hope this helps

Should a collection account be paid in full, or paid in payments, for a better credit score.?

Pay it off!

Negotiate a deal with the collections agency and pay it off. You can receive a discount of 75% or greater at times.

I am not condoning not paying debts, but you are wearing the pants in this. You have already hurt your credit (not killed because it can be saved). They want money, you want the best deal possible.

Start at what you can afford. Lets say you have $1,000 in debt and are receiving letters. Call the company and ask them what is their best deal. They will give it to you and tell them sorry but you cannot afford that amount. They will try to find a way to get it from you. DO NOT pay anything. It is a negotiation.

If the letter states that the card can be paid off for $700, they may say $500 to get you to write check. Tell them and sound sincere, that you can afford $200 and you will keep saving to pay it off. They should counter offer. Do not give in until they are around $300.

It takes 7 years for history to be removed from a credit score. It is 7 years from your first missed payment payment.

Should a collection account be paid in full, or paid in payments, for a better credit score.?

Remember, that you can also negotiate how it appears on your credit rating. Bottom line is that they want money and you too have a say so in the manner in which they get it!

But please put everything in writing. You are in charge here. Hold your ground and make sure you get what you want.

When you decide to pay the collection debt, you should contact the collector to see if you can negotiate an agreement. Since collectors buy debt for pennies on the dollar, they are often open to negotiating a reduced settlement. Some collection agencies will also offer to take the record off your credit report if you pay the debt. Have the collector send you the terms of your settlement in writing. You may need to use this letter if the debt resurfaces.