I have a couple bad things on my credit report that are dragging me down from yrs ago . Im trying to find out if the credit card company will keep reporting negative info every month for 7 yrs from the 1st time I missed a payment and it went into default OR when I opened the acct. Also once the 7 yrs are up will it fall off like it never happened? If you pay it off does it dramatically boost your score or still show negative but paid? One of the companies has been reporting negative for 6 yrs now and im wondering if it will fall off in one year or if I should pay it.
2007-01-27 05:29:23 · 5 answers · asked by arizona 1 in Business & Finance ➔ Credit
Kevin is correct. The rest are just another example of why you need to be careful getting advice on Yahoo Answers.
Notice nobody give you sources?
You ask a lot of questions, let me go over them for you...
Negative information is reported on your credit history for 7 years, beginning on the date of the delinquency. For example, if the billing date was February 1, 2000 and you miss the payment, THAT is the delinquency date. After 7 years (Feb 1, 2007) that report must be deleted from your credit. There will be no further mention of this debt on your history. This should be done automatically. If not, contact the credit bureau and dispute it.
If you pay this debt, it will actually HURT your score, not improve it. First, all that the creditor is required to do is change the status to show "paid" but it will still show late payments, collections and charge offs. It's still a negative item.
Also, after a negative item has been on your record for a few years, it starts to lose importance on your credit score. Recent debts hurt you more. By paying off this debt, you change the status to "recent activity" and it actually hurts your score! Amazing, isn't it?
What you do will depend on what your current situation is. If you plan on getting a large loan soon, and you need to quickly improve your credit, you can try negotiating with the creditor. In exchange for payment, demand that they delete this from your credit history.
Otherwise, just wait for it to drop off in a year. If they are threatening you for collections, keep in mind that every state has a statute of limitations. After a period of time (usually 4-6 years) they can no longer legally collect on the debt.
See the links below for more info on this, and to understand the Fair Credit Reporting Law.
2007-01-27 11:55:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Do not, I repeat, do not pay any debts this old. There is something called the statute of limitations (every state has one) and by law they cannot collect on this debt. To answer your question, whenever an account goes to collections the furnisher must provide the credit bureaus with the date of 1st delinquency. Once you are 7 years from that date, the collection will fall off and your score will go up.
Paying it now will NOT help your score, in fact, it could hurt it since it will make the account seem more "current".
2007-01-27 06:19:08 · answer #2 · answered by Kevin K 3 · 2⤊ 0⤋
The bad item will fall off 7 years from the date of last activity. That in most cases the last time you made a payment or they charged it off. So if you made any payments in that 7 years it will reset the counter again.
If you pay it off now, it will showed as Paid but previouly late. This is much better than showing currently past due. But there could be a lot of factors and it may actually decrease your score.
2007-01-27 06:22:16 · answer #3 · answered by OC1999 7 · 2⤊ 0⤋
One would hope you do your best to pay your obligations, even if you pay late.
Texas reports keep your bad debt on record for 7 years. Call the Credit Card Company and see what they can do for you...many times just talking with them will help you. You should also consider talking to a debt reorganizer...http://www.consumercredit.com/howitworks.htm is one place to consider, but there are many free services to help you.
And don't wonder if you SHOULD pay it...trust me, you SHOULD. One of the reasons the price of goods goes up is because the companies have to eat so much bad debt.
I wish you luck, dear one, and restraint where credit is concerned, with your future.
2007-01-27 05:37:42 · answer #4 · answered by rrrevils 6 · 0⤊ 0⤋
my mom has an identical concern with some issues on her credit checklist and that they do get off your credit checklist after 7 years yet its 7 years from the time they are opened. like my mom had some thing from sept of ninety 9 and it juss have been given off her credit checklist on the tip of sept this previous year. its quarterly additionally. So if u opened them between now and march it may well be off by utilising the tip of march this year. Or if it became between march and june it may well be off by utilising the tip of june and etc.
2016-11-01 10:30:01 · answer #5 · answered by ? 4 · 0⤊ 0⤋