I have credit problems that have been seriously delinquent for a few years. If I were to contact those companies and pay off the % they'll accept, will it say on my credit that I'm a jerk that only paid part of what I owed? Even if it's a closed debt, I'll still look bad to creditors because they were paid so late, so are they worth paying at all?
2007-01-06 07:35:29 · 3 answers · asked by censored_4_tv 4 in Business & Finance ➔ Personal Finance
It is better to pay what they will accept and have it show as a settled account with a smaller charge-off than if you just don't pay anything and they charge-off the whole amount. Of course it will still look bad that the companies had to charge-off any amount... It will definitely look better to creditors that you eventually paid it even if it took you a long time to pay it.
*** The delinquent accounts will show on your credit reports for as long as the companies keep reporting them. After 7 seven years you can request that the delinquent accounts be removed from your credit reports, but that doesn't mean that they will be removed. For bankruptcies it is 10 years.
2007-01-06 09:32:58 · answer #1 · answered by sparky_12s 2 · 0⤊ 0⤋
Your credit is already ruined and if you pay them, it is still gonna show a negative report. Wait another few years because it takes sevens to ten to clear and you will be good again! They will threaten to sue you even after the seven years when it clears your report, but its usually just threats. Good Luck! The accounts that you have open still, pay them on time and things will look good for you soon!
2007-01-06 15:44:43 · answer #2 · answered by Little Lisa 3 · 0⤊ 0⤋
The answer to your first question is "yes." To answer your last question, the reason you should atleast consider paying the debt is that with the change in the bankruptcy laws that took effect in October 2005, creditors have begun to sue more debtors because they know debtors cannot claim bankruptcy as easily.
2007-01-06 21:25:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋