need to get life on track again. Read my report and says will be on report until 2010, 2011, etc. if i call & talk to the creditors and try to pay will they take off before 2010, 2011 or if I pay will these still be reported?? Please help.
2006-09-29 16:23:46 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
I've worked with credit for over 12 years now. First off, remember that a credit report is not YOU. Don't be embarrassed to look at or talk about it, because you can only fix something that you try to fully understand. Congrats on being brave to confront your credit rating.
Ok, on to your credit. Lets take a look at what is reporting negatively on your credit. What kind of accounts are showing... collections? Charge offs? Judgments? Judgments are court rulings, and will not be resolved until paid in full, and recorded at the courthouse as satisfied. Collections and chargeoffs, you can work with. The next question is "are the reporting the status correctly". 1 out of 3 credit reports contain a substantial error. If something is inaccurate, DISPUTE it, with ALL credit bureaus that report it. www.transunion.com, www.equifax.com, and www.experian.com will give you the process to dispute it.
If they are accurate, put on your negotiation hat, and work out a "settlement". This is an offer to pay a lump sum $ that they will accept as "payment in full" for the debt. Just get the settlement in writing before paying, and then get proof they received the payoff. Follow up, and make sure they report the account as agreed - PAID IN FULL.
Other negative items, like a debt (credit card, dept. store card, car loan, etc) that are CURRENTLY past due, must be paid up-to-date before your credit will improve.
Lastly, take a look at the POSITIVE accounts in your credit. You should have a good "mix" of credit - 1 or 2 credit cards with low balances, an installment loan, a mortgage (if possible) - and make sure they are PAID ON TIME!
If all else fails and you can't afford payments, consider speaking with a credit counselor. Check out a non-profit organization called Consumer Credit Counseling to see about setting up a payment plan and work through your debt that way.
The last tip is control your debt lifestyle. Don't use debt unless you absolutely have to. Save for things you want to buy instead of buying on credit impulsively. Good luck, and I hope this helped.
2006-09-29 17:08:04 · answer #1 · answered by abcdgoodall 4 · 0⤊ 0⤋
You have alot of good advice here, however, there is one point that I didn't notice. If you can pay them in full then go ahead and do that and work on getting that info placed on your report. However, if you are just going to make payments and you get in trouble again and can't continue to pay then the seven years will start all over at the time of your last payment. You say that at this point they will be off of your credit report by 2011, but if you make payments thru 2008 and then stop paying, that particular debt will be on your report until 2015. Then say you start paying again in 2010 and have to stop in 2012 that debt will be on your report until 2019.
If you can pay it my advice is to pay it. If not, let it go until the first seven years are up and not get into the long-term trying and failing game with the creditors.
Just something to consider......
2006-09-30 12:14:25 · answer #2 · answered by Kate 3 · 0⤊ 0⤋
Once you incur a bad debt there is an extremely slim chance that a creditor will take it off even if you do pay it off. They have the right to keep on reporting it for the next 7 years from the time that it was first reported. But you can try, you have to pay for it in full first. Another thing is that if you do pay in full, in a couple of years those negstive things will not affect your score as terribly as they are right now. A credit score is based on what is Open and Current, UNLESS it is a big ticket item like a mortage.
2006-09-29 23:29:06 · answer #3 · answered by whackiejackies 3 · 0⤊ 1⤋
If you have overdue loans, it will probably be on your credit report for at least 7 years even if you pay them off now. But if you do pay them in full and in a timely manner, you can ask the lender to send the credit reporting agencies a letter stating that you did pay the bills in full. This will help your credit rating sooner than just waiting for the old information to drop off.
2006-09-29 23:30:44 · answer #4 · answered by Ralfcoder 7 · 0⤊ 1⤋
If you were late on payments or hauled into court will say there 7 years. Reports r slow and changes r made very slow. Plus lenders r looking at your historical payments and not just recent ones. Bad credit menas no loans or higher interest loans cause u r a risk,
2006-09-29 23:36:18 · answer #5 · answered by spook12spook12 2 · 0⤊ 1⤋
negative accounts stay on the credit for 4-7 years, bankruptcy can stay on your credit report for up to 10 years. doe's not matter if those account are paid or not. of course if you don't pay your accounts- this will affect your credit score all the time and if you pay them, even with negative mark, they are not calculated like negative accounts after one year, but they are there for everybody to see your payment history.
2006-09-30 00:12:05 · answer #6 · answered by bianca 4 · 0⤊ 0⤋
any bad credit info will stay on your report for 7 years- paying debt will not remove them
2006-09-29 23:32:05 · answer #7 · answered by Mopar Muscle Gal 7 · 0⤊ 1⤋
You won't go to jail unless it is reeeeeaaaalllly bad with the IRS.
Go sign up with www.moneymanagement.org. My roommate did it and can finally breathe again. It is a wonderful program.
2006-09-29 23:33:44 · answer #8 · answered by mickeyg1958 4 · 0⤊ 1⤋
they will not clear your credit report even you paid them .
2006-09-30 00:16:27 · answer #9 · answered by colorado 3 · 0⤊ 0⤋
There are some useful tips here.
2006-09-30 03:31:15 · answer #10 · answered by Anonymous · 0⤊ 0⤋