If I pay off a 1 year old CO will my FICO drop?

[DiamondDan73]

I have a CO for $350 on all 3 reports from a checking account that went to collections in December 2011. This is also being reported on Chexsystems. I have tried to PFD in the past and they won't budge. I am afraid that if I do pay off the CO my score will drop. I just got my scores above 650 and have had some pretty good credit approvals lately. We want to get a mortgage in the next few months and would hate to screw that up.

 

The only reason I would pay this off is to get into DCU. They could not approve my membership because of the CO checking account on Chexsystems. I have already been approved for the Plat Visa for $5,000. They told me I can get in as soon as I pay off the CO and get out of Chexsystems.

[stroked89coupe]

http://creditboards.com/forums/index.php?showtopic=507216

[schizcat]

it may, it may not. i paid a CO that was 3 years old at the end of last year and my scores actually went up...by alot. It allowed me to get new credit. if you are trying to buy a house, you may have to pay it off to get the loan. I would talk to a loan officer about that part of it. my personal recommendation is to go ahead and pay it if you have the $$. im a firm believer in fighting things that arent mine, however, some things i feel you just have to pay. others may disagree, but to each their own.

 

Just to add something. If you pay something like this, you may have a chance of getting it deleted afterwards, or they may just delete it for you. In my experiance, its happend both ways.

Edited March 10, 2013 by schizcat

[DiamondDan73]

Thanks for the reply. I really want to pay it, but I don't want to pay it if they don't delete it. I have already offered them full payment for delete. theyy refused. I'm sort of in a catch 22. I don't need to pay it since its under $1000 for the mortgage. I really like the idea of a new $5,000 dollar credit card. I'm just afraid that it will re-age on my Chexsystems and my CR's.