Is it a good idea to settle old collection accounts for less than what’s owed? Will doing so improve my credit score?

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Posted by Allison Martin (MONEY FORUMS: 3, Answers: 0)
Asked on August 9, 2016 12:01 am
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Any delinquencies or collections negatively impact your score. Therefore, paying off these debts will increase your score. The real question is “how much will it increase my score?” Unfortunately, that answer is a mystery. If you elect to settle the collection for a lower amount, be sure to get a letter from the creditor prior to sending any money. The letter should state that the debt will be report as “paid in full”. I hope that this helps!

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Posted by Roslyn Lash, AFC® (MONEY FORUMS: 0, Answers: 3)
Answered: August 11, 2016 2:12 pm