2007-01-23 06:56:07 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
According to the FCRA, a collection account may only remain on your report for 7 years from the date of 1st delinquency. That is, if an account went delinquent in 2000, was sold to a collection agency and sold again, the DOFD does not change. It must be removed in 2007, so keep your records.
By the way, paying an unpaid collection over 5 years old will do little for your credit, so I would wait until it falls off. If it's relatively recent, like 2 years, I would pay it off, but only if you can afford it. A paid charge off is little better than an unpaid one.
2007-01-23 08:50:22 · answer #1 · answered by Kevin K 3 · 0⤊ 0⤋
7 years
2007-01-23 06:58:51 · answer #2 · answered by Lisa A 7 · 0⤊ 0⤋
7 years is correct, but as someone mentioned, companies can keep your account active by selling it or keeping active collections on it. If you have something 6 years old, I wouldn't bother it.
It's sad to say that since I work for a finance company and swear by paying bills, but lets be honest lol, if something is about to fall of, why not leave it be.
Renewing an old debt by calling to make a payment arrangement can actually harm your score. Your score is based off of your last 2 years of activity.
But, of course, I encourage the resolution of all debts so you never have to ask these types of questions.
2007-01-23 07:25:19 · answer #3 · answered by Cynthia S 4 · 0⤊ 0⤋
The typical answer is 7 years but the current collection company will sell it to another just to keep it alive
2007-01-23 07:00:59 · answer #4 · answered by golferwhoworks 7 · 0⤊ 0⤋
Usually it can take up to 7 years to clear a credit account. Its a long time to wait.
2007-01-23 07:53:04 · answer #5 · answered by Bruce 4 · 0⤊ 0⤋
5 years. At that time they are what the creditors call "outlawed" which means that they can not legally collect on a/that debt. They can continue to request that you pay (by phone or mail), but you are not legally required to.
2007-01-23 07:28:46 · answer #6 · answered by DD 1 · 0⤊ 0⤋
who cares if you have money you dont need credit
2007-01-23 07:06:57 · answer #7 · answered by Anonymous · 0⤊ 1⤋
why not just be honorable, and pay your debts?
2007-01-23 07:03:43 · answer #8 · answered by Anonymous · 0⤊ 2⤋