payment settlement
Is it better to make a settlement amount or set up a payment plan for on accounts in collections?
Which plan would build my credit better or sooner.
Neither. Simply PAYING debt in collections that is reporting on your credit reports will not improve your score. It will only help you with underwriting standards if you are planning on obtaining a mortgage. The ONLY way paying debts off will improve your scores is if you receive in writing a promisary letter from the colllection company agreeing to remove the account entirely from the bureaus once payment has been made.
If these collection companies will not agree to provide you with a “pay to delete” letter prior to making the payment, there is really no incentive for you to pay them, other than avoiding a potential judgment against you.
You would be better off getting yourself set up with a revolving line of credit (secured credit card) and rebuilding credit that way. Good luck!
Debt Settlement Payment