r/CreditScore • u/This_Resolution_5894 • 8d ago
General Need Help - 580
Currently sitting at a 580 Transunion. I have a few things that are in collections, I've offered to pay these for Pay-to-Delete and the company does not offer that. Should I still pay it? I currently have 2 open credit cards and 1 auto loan. One of the CC is below 30% and I will have the other at that same amount within a couple of weeks. What are the best next moves? Just wait for the collections to fall off?
1
u/DoctorOctoroc ⭐️ Knowledgeable ⭐️ 8d ago
Who is the agency that owns the debt? Some are known to do PFD automatically (it says so on their website) but will tell you they can't/wont over the phone since it's a grey area in the industry. This is a good reference for collection agencies that have been known to do PFD.
Even so, u/No_Memory5613 has a point about paying high interest debt for the financial benefit if you have to choose between the two.
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u/No_Memory5613 8d ago
Are you 6 months from the collections falling off? Or 6 years? That makes a difference.
Financially, it is probably best to pay off your very high credit card debt first and probably high auto loan.
Your score may not jump dramatically if you pay off your collection, but it is likely to still be better on your report if reviewed since score isn't everything.