Paying off an old collection (pay for delete) and impact on credit score in the short term.

Paying off an old collection (pay for delete) and impact on credit score in the short term.Paying off an old collection (pay for delete) and impact on credit score in the short term.
MerrillSab asked 5 years ago

Hello FICO community.  I’d appreciate some assistance with improving my credit score.  

 

I’m in the market for a home and the particular loan I am interested in requires that my score be at least 720.  My current FICO score ranges from 703-710.  I have one old collections dating back to 2010 that I was not aware of until recently when pulling my credit report.  

 

I’ve read some mixed advice regarding the utility of a pay for delete deal with the collections agency.  Some say it’s a great way to improve your score in the short term while others have stated that it’s not advisable to bring the old collection back into the spotlight with activity and that this action alone will drop my score drastically.  This last bit was unknown to me and doesn’t seem to make sense.  If the collection agency agrees to report to the credit bureau that the collection is in error, shouldn’t that improve my score?  Can someone please help me with this?  

 

Thank you very much.

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