What would be best for credit score?
My almost 30 year old son really messed up in his early twenties and has a pretty bad credit score - he checked it on Annualcreditreport.com and it was 567. (I know that's not a real score, but guess it's pretty close). Anyway, my question is what should he do about an old Discover Card account that has gone to collections. The original balance was $1200, which eventually grew to $2700 with interest and penalaties. The collection agency will accept $600 to close it out. He last made a payment on the account in 2006. Which will be more helpful to his credit: pay the $600 now, or wait it out until the account falls off his report, which I guess would be 4 more years?