My credit score is currently 570 and I want to improve it but because my debt is all in collections and they are all at least 3 years old I don't know what to do.
2007-01-29 09:51:29 · 11 answers · asked by sheila s 1 in Business & Finance ➔ Credit
Start paying them off. A closed account on your report is 100 times better than one still in debt. It takes 7 years for an account to come off your credit report, but the fact that you took the initiative to pay your debt will look better with creditors like banks. Most collection agencies will work out a payment plan with you - keep working with them until they settle for an amount you can afford per month - most agents will ask for a higher payment plan just to get their monthly bonus fatter!
2007-01-29 10:01:15 · answer #1 · answered by margarita 4 · 0⤊ 0⤋
Let me clear up a couple bad answers.
Jen G is confusing the Statute of Limitations with the credit reporting period. Take a moment to read the first link below as it discuses both.
Margarita gives the standard collect agent answer of "just pay the bill". Sorry, but in a lot of cases paying the bill actually hurts or credit score even more. And it certainly does NOT improve it.
When you pay off a bill in collections, all the collection agent is required to do show the account is paid on your credit report...but all information about late payments, collections, and charge off's will remain. It's still a bad item on your credit report, and will hurt you until it automatically drops off after the 7 year period.
Why on earth would you pay a debt and still have a bad credit history? Remember, the reason you said you were paying is was to fix your credit?
What you need to do is negotiate a settlement with the creditor. In exchange for payment, demand that they delete all negative information about this debt from your credit report. Get this agreement IN WRITING before you pay them a dime.
It is completely legal for them to do this. Many will tell you they can"t (against the law...not allowed by the credit reporting bureau)....
They are lying! I've researched this a lot over the past year. I've challenged many people to show me where it says they can't do it. Not one has answered my challenge! It's hard to prove something that doesn't exist.
So my suggestion is to first try to get this removed through the dispute process (see the second link), then negotiate a settlement with the creditor. If they won't agree to delete the entry, don't pay them!
2007-01-29 11:41:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Whatever you do, DO NOT use a debt consolidation company. Sometimes they call themselves debt negotiators or various other names. Don't use them. They will damage your credit score and you are trying to fix your credit. Here is what happens when you use a debt consolidation company.
Let's say for the sake of this answer, that you owe A Credit Visa the amount of $10,000. The scandelous fiends at debt consolidation companies call A Credit Visa and tell them that there is no way that they are going to see that $10,000, ever. You have too many bills to pay and can't afford it. But what they will see is $2,500 payable in 25 monthly installments. Of course A Credit Visa is going to take the offer because something is better than nothing. But they will report to the credit bureaus that they have charged off the remainder of your debt. A charge off is the absolute worst thing you can do to your credit report. Even a bankruptcy isn't as bad as a charge off.
But remember, that your "friend" at the debt consolidation company is making these negotiations with ALL of your creditors. With the same result from each of them. Now it doesn't take a rocket scientist to figure out what will happen to your credit score.
As posted by another person, sometimes paying off a debt in collections that is that old will also hurt your credit score. So you need another option. There is one. Now you will have to do some work, but it will work especially if the bill collectors have stopped trying to collect. It is called credit restoration. No it is not illegal. Yes it does work if you use a legitimate company. No it will not work if you use a scam artist. Read my article on my blog at http://creditconcerns.blogspot.com/ to learn how to tell the difference.
And as always, DO YOUR DUE DILLIGENCE.
If you have any questions about credit issues or concerns, you may email me at nebula7693@yahoo.com
2007-01-29 16:01:02 · answer #3 · answered by nebula7693 4 · 0⤊ 0⤋
Hello Shiela, I definitely understand that having old collection accounts lingering on your credit report can be frustrating. I agree with the other posts that your best thing to do is try to negotiate a lump sum settlement. Only problem, trying to do it yourself can be quite challenging. I recommend to use a debt setttlement company because they have relationships with collectors and can get you the best settlement offer. Also they do everything for you! Call this company - Debtmerica at 1-800-470-8155 Ext. 109. They have a AAA better business rating and a money back gurantee.
2007-01-29 12:58:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you may attain that the date you notice on your record is the final time it substitute into suggested by the series company. That has not something to do with the date it is going to fall off. The date that they have got been charged off is the date that starts the 7 3 hundred and sixty 5 days clock, and that's very virtually never on your credit record. despite if, some comments will say that the article is scheduled to be bumped off on... and record a date. in the event that they're legitimately previous the 7 3 hundred and sixty 5 days mark, an undemanding letter to the credit reporting company could get it bumped off. merely verify you deliver it qualified mail, return receipt asked so as which you have info that they gained it, and the date.
2016-10-16 06:44:05 · answer #5 · answered by ? 4 · 0⤊ 0⤋
FYI: Keep in mind that yes, it does take 7 years and then it SHOULD come off your report. If it doesn't you can report them. The 7 year statue just means that after 7 years they can't take you to court to get the money, that doesn't mean the collections department can't still call and harass you. The best thing you can do is try to knock them off one by one and make payment arrangements with them. You may also be able to get them to settle for a bit less if you can come up with what the want up front.
2007-01-29 10:05:35 · answer #6 · answered by Jen G 3 · 0⤊ 1⤋
Building a good credit can be done in various ways. If you are fed up of the collectors tirelessly chasing you to pay your debts or if you are disappointed at your loan application being turned down, because of absence of credit history, you should learn how to do build your credit.
2007-01-29 17:20:17 · answer #7 · answered by juli o 3 · 0⤊ 0⤋
If you are a homeowner, fill out the free evaluation form at
www.totaldebtsolutionsllc.com
They offer many programs from credit repair to debt settlement to a network of loan officers they deal with or a combination of these. Good luck!
2007-01-29 11:20:02 · answer #8 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
pay them off, don't just let it set there on your credit report. And it's wrong to just let it go for 7 years, that's basically theft. And even after the 7 years, they might sell the debt to yet someone else and it then stays on your credit.
2007-01-29 10:49:47 · answer #9 · answered by The Scorpion 6 · 0⤊ 0⤋
Start paying off them...
i would suggest that start paying off the one with the minimum debt on you..
2007-01-29 10:07:26 · answer #10 · answered by Inquistive_man 3 · 0⤊ 0⤋