I've looked up some information, but i cant find exactly what i want to know... so maybe some one can just tell me...If i pay a collection, it wont be off my credit report for 7 years? y? And bad debt, If i pay that off, will that be removed? Should i wait 7 years to have my credit clean or work on removing items?
2006-06-20 10:57:44 · 4 answers · asked by csabrinam 3 in Business & Finance ➔ Credit
Before doing any credit repair, opt out first.
You should send a debt validation letter to the collection agency.
Their response shoud totally validate the debt. If you feel that their respones is correct and you want to pay it - send a pay for delete letter. Request that they remove the account from your reports upon payment, that they will not continue to collect the debt, that they will not sell the debt or the remainder of the debt if you have an agreement with them to only pay them a percentage of the amount.
In that letter you should request to pay a percentage of the debt. Collection agency's pay roughly around .50 cents on the dollar for those accounts. Junk debt buyers pay only pennies on the dollar or even less.
You should also do some research and find out your statute of limitations for the debt in your state. If it is past the statute of limitations, you are not legally required to pay the debt. Paying it at that stage would be your decision.
If it is past SOL and you do not pay it, they can only legally report the account for the original 7 years. They cannot re-age the account.
Learn your rights.
I would suggest popping in to the site that I am linking and do some reading.
2006-06-20 11:55:31 · answer #1 · answered by echo 7 · 3⤊ 0⤋
Easy answer.
If you think you will need a car, a house, a student loan, or a credit card between now and when the 7 years expire, fix it now!
If you KNOW you have family "sponsors" that will take care of you until these negative items fall off your credit report, then wait.
For example, if you were in year 5 and didn't see yourself needing credit for 2 more years. Don't pay it off if they are big balances, just wait.
But if you are in year 2, you might want to pay them off because 5 years can take forever to just roll by.
Hope this helps.
2006-06-20 18:33:59 · answer #2 · answered by DaMan 5 · 0⤊ 0⤋
you should consider doing a Chapter 7 bk go talk to a bk lawyer look it up in a phone book for a coalition it coast anywhere from 0-100 dollars it stays on your report for 10 years but most of your debts are wipe clean and you can start over.At first if you get a home loan or a car loan you will have a high interest rate but you can always reference when your credit gets better.And you can most of the time get credit cards about a year after the discharge.you cant get rid of any government loans like student loans.and if you do hire a lawyer it coast about 1000-1200 but they work with you and you can make payment to the firm
2006-06-20 18:11:43 · answer #3 · answered by Sonny 3 · 0⤊ 0⤋
You should work on cleaning up your credit now, and then have a reveiw of your credit report done by all three major credit bureaus. Many dont' know this but you can pay to have a review of your credit done and they will raise your score. You need to pay off any debt and collection you have to do so. No current late payments.
2006-06-20 18:07:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋