Mortgage and Insurance

Hi All,

 

I’ve been trying very hard over the past few years to pay on time and stay current. I haven’t had a late payment in over 4 years (yay!), I got a car loan and passed a credit check for an apartment in ’09 and got a AmEx Zync and AT&T cell phone account in ’10 (both in the past 3 months). I just checked my Experian score and was shocked to find it at 593. I knew it wasn’t going to be perfect, but I didn’t know it would be that low! I know that there have been some inquiries lately that have dinged my score and my credit cards are almost at their limits. I plan on not applying for any more credit for at least a year and paying down all of my cards.

 

My question is regarding collections. I just found an inaccurate collection from a utility company and submitted a dispute. However, I have 3 medical accounts from 3 years ago that are unpaid (a total of about $800) and a collection from First Premier Bankcard (about $500). I’m hesitant in paying these off because I heard that if you pay them, they can hurt your credit. Is this true?

 

Can anyone give me other tips, besides paying down current cards and continuing to pay on time?

 

Thanks!