Is there any benefit to paying off old collections on my credit report?

[danil70]

5 years ago I had an appendicitis while I was uninsured and was making a whopping 9 dollars an hour. Needless to say, I didn't have money to pay for it. Long story short, after charitable help I was still left with about $3k in doctors bills that I never paid. My gf and I are reviewing our credit to purchase a house soon and I still have those collections. I said I had no intention of ever paying them off b/c even if I pay the collections they won't come off my credit and my credit score won't change. She said I should pay them back b/c it was the "right thing to do". If even after I pay them back those collections will still hurt my credit why should I pay them back. If they would remove them I would pay them back tomorrow. If you pay someone back later it's better than not paying them back at all. But the way the credit system works if you pay someone back it still looks effects your credit score as if you never paid off your debt. It's not my fault the credit system is unfair to the consumer. Is there any real benefit to paying people back after them having sent the bill to collections? Remember, this is dying in an emergency room bill, not I bought a TV I couldn't afford collection. Spare me the moral argument.

[seme22]

You should NEVER pay a collection account unless one of the following situations is happening.

- You get a "pay for delete" or non-disclosure agreement in writing.
- You need to satisfy the debt to secure a loan for a house, car...etc.
- You need to satisfy the debt to secure a job/security clearance.
- You are being sued.

Unless one of those situations is happening, there is simply no benefit to the consumer paying a collection account. Additionally, since this happened 5 years ago, you're almost to the end of the 7 year reporting period. Just wait it out.

[jen]

Most medical bills can be removed if you will ask for a "Pay for delete agreement" in writing first.

This simply says that in return for your payment they agree to remove the accounts from your credit report.

Without this agreement your right paying them will not help your credit score at all as a matter of fact it will actually lower it since as soon as you pay them they become current rather then old accounts.

Good luck.

[reid]

If you pay it it wont make your credit score better. But on the report it will say paid in full. That does make a difference. When other people pull your report to see it and it says paid in full. Also usually after 7 years it falls off the report. I mean if you can hold out another few years. The statue of limitations take effect.

[symington]

honestly, I wouldn't if it's not going to help your credit score especially if you're trying to buy a house, you could use the $3,000.

[darrick34]

This debt will age off your credit report naturally in two years anyway...Best to not stir up trouble and sit tight for two years.

Renewing contact with debt collectors out of the blue for old debt can stir up all sorts of problems. It’s my position that a tiny increase in your credit score is not worth the risk of triggering aggressive collection activity against yourself. Most collection agencies are very nasty and aggressive and you might be unpleasantly surprised at how they respond to your effort. Your effort to “do the right thing” to pay off old debt could be met with threatening, abusive collection calls...threats of lawsuits...and once they find out that you are willing to pay they will probably add on all sorts of fees and they’ll come after you for two or even three times the original amount of debt. Even worse, they might decide to take you to court to try to get a judgement against you for the debt...leading to possible wage garnishment of 25% of your wages.

If you're going to pay off old debt anyway:

You may be able to negotiate the complete removal of non credit card debts like defaulted cell, medical, utility bills etc. with a Pay for Delete agreement. This is a written agreement where you get a signed agreement from the debt collector (PRIOR to making any payment) where they offer to remove the negative items from your credit files after an agreed-to amount is paid. They will NOT want to do this....all they want is your money and their commission and they could not care less about your credit rating....Still, you have something they want (money) and that puts you in a position to negotiate on

DO NOT admit in writing to owing the debt...if you do you might trigger a lawsuit against yourself. Mail them a vaguely worded statement like:

I am willing to resolve this issue if your firm sends me a written agreement that you will remove all negative notations from my credit report after the agreed-to amount is paid to you. Upon receipt of this letter I will mail you a USPS money order for this amount.

[varik]

Debts or Defaults should be cleared from your credit history within 5 years usually(sometimes 3)