If I pay it off, will it come off of my credit report? If not, will it say that I paid it? Is it worth paying it off or should I spend the money elsewhere. I want to buy a house in the next year and want my credit to look as good as it can....
2006-12-31 03:37:15 · 6 answers · asked by redsox fan 4 in Business & Finance ➔ Credit
Yes, it will show as "paid", but that will do little for your score. The best thing to do is have it REMOVED, not just paid. A charge off is a black mark, paid or not, since companies look at it like you paid it only after it went into charge off status. So I would negotiate with the original company for a "pay for delete". That is, get in writing that if you pay it they will DELETE it, not just mark it as paid.
2006-12-31 04:24:06 · answer #1 · answered by Kevin K 3 · 1⤊ 0⤋
Yeah, I had a cell phone chargeoff myself a few years back. I thought wow, this is really going to hurt my credit. So, I paid it, and the only thing they did was change the collections account to say that it was paid. It's a joke. Credit companies don't care how much they ruin your credit as long as they get paid. As it didn't help my score, since it was already in collections, I say don't pay. Also, I've heard that after a collections account is 2 years old, it doesn't look as bad anyways.
2006-12-31 04:26:06 · answer #2 · answered by Ezra Zane 2 · 0⤊ 0⤋
A charge off remains on your credit report for 7 1/2 years from the last payment.
If you try to apply for more credit, especially a mortgage, the bank will probably require that it be repaid.
If you want to pay the bill, try to negotiate what will be reported to the credit bureaus.
For example, try to have the charge off removed and have your record read "Paid as Agreed" or some other such language.
2006-12-31 04:02:47 · answer #3 · answered by jbowler 3 · 0⤊ 1⤋
There are lots of ways to accomplish what you want but only 1 best way. If you have lots of time and persistence, you can take a stab at it yourself. I believe, however, that your credit is at least on the same level of importance as taxes (which most people have professionally completed). I know of a non-profit company that does all the leg work for you and hopes to improve your score 90 points in 90 days.
2007-01-01 04:29:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It is only advisable if you pay the cell phone carrier. Collection agencies will promise you the worls and are only obligated to report it as paid nothing more. That can actually hurt you more then help. I would contact the cell phone carrier and pay them. Then after you pay it dispute the charge with the credit reporting agencies. I have done this myself numerous times. Once it is disputed it will typically come off.
2006-12-31 03:41:47 · answer #5 · answered by logan 5 · 0⤊ 1⤋
Don't pay it. If you pay it it stays on for another 7 yrs. anytime you have any activity on a negative item on your credit report the 7 yrs. starts over . If you don't pay it it will go off 7 yrs after the last activity shown. So if you haven't payed on it for like 3 yrs, it will be on there another 4, for example. Beside, you can usually buy a house as long as none of your delinquincies are more than 1000 dollars so that they can't put a lean on your house.hope this helps.
2006-12-31 03:42:19 · answer #6 · answered by big stan 5 · 1⤊ 1⤋