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Is it better to pay off a collection or just wait it out?
I had a $340 medical bill go to collections last year and I'm torn on what to do. Paying it might bump my score but also resets the clock, while leaving it alone could just fade away after 7 years. What did you guys do when you had a small collection hanging around?
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kai8393mo ago
The collection agency's already got their money from the hospital, so paying does nothing for them.
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torres.riley3mo ago
Yeah honestly in my case I just ignored it and it fell off my credit report after like 7 years. @kai839 the hospital sold it for pennies on the dollar so they already got paid, paying me would just be throwing money away.
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alex8203mo ago
My buddy had a $250 gym membership go to collections and he called them up to SETTLE for $50, they took it. Now here's the thing nobody is saying - paying it CAN actually help your score if the collection agency agrees to DELETE it entirely from your report, not just mark it paid. You gotta get that in WRITING before you send a dime though. If they won't agree to a pay-for-delete, then yeah I'd probably just let it sit and age off at 7 years, because having a paid collection still hurts your score almost as bad. The real trick is to check your state's statute of limitations too, because once that passes they can't even sue you for it anymore.
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