Question:

I have many credit cards that are in a collection agency, should i pay them monthly or pay all at once?

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Im trying to raise my credit score, so is it better to pay off all at once or should I pay monthly payments?

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11 ANSWERS


  1. They'll be happy to get the money any way that they can. Try a Credit Counseling Service and they'll make it easier and save you some money.


  2. since they are all in collections, your credit score is probably pretty bad right now. If you have the money to pay them all off at the same time, why didn;t you do that before they went to collections? - or at least make monthly payments on time - even if you pay them all off right now, it will take a long time for your score to recover

  3. You need to understand that if you've had a bunch of recent charge-offs, paying off the collection accounts for these items won't magically fixed your credit rating...

    You can expect a slight increase in your score if you pay them off....Only the passing of time will fix your score....sorry

    Make settlement offers in the 25% range and go from there. Always get the terms in writing PRIOR to paying them. Never accept verbal promises from debt collectors. Never, ever give debt collectors your checking account number.

  4. honestly, if they are already in collections, then it doesnt matter much.

    it wouldnt hurt to try to settle for less, or get an agency to do that for you.

    i would pay monthly just so you do pay it instead of using that saved money on other stuff...

    good luck.

  5. Unless you have a written pay for delete agreement from the collection company paying old accounts in collections will not help your score at all as a matter of fact it will actually hurt your score because if you pay them they become recent rather then old accounts and will lower your score.

  6. Pay them all at once if you can..

  7. if you can afford to pay 'em off at once and they're in a collection agency do it, if they're just cards you have balances on and your trying to build a credit score pay them over time.

  8. It wouldn't make a difference how you paid it since it's already in collections. Make sure you have a written agreement with them to remove it from your credit report, in exchange for payment or don't pay it.

  9. monthly payments.  

  10. If you can afford to pay them all at once, then please do so.

    This will lower your high debt to income ratio.

    If you can't afford all at once, then pay as much as you can up front and stick to a monthly repayment plan.


  11. If they are already in collection, and you have the means to pay them all off, then definitely do so!  This won't make a huge difference on your credit score, but it will positively affect your debt-to-credit ratio some.  You'll still have the delinquencies on your credit report for 7 years (in most states).

    Also, if you can pay them off you can avoid more interest and fees from the debt collectors.   So if you have the money, do it now.

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