Paying off a debt incurred 5 years ago?

Question

how long would it be for the credit agencies to update my file to "Paid",and how would that affect my credit

Answer 1

dont do it. your credit history is called your credit history becuase it reports your history. a paid previously derogitory is still derogitory, it doesnt go away just nor does it improve your credit score becuase its now paid.

fact is that derogitory items can only stay on your credit report for 7 years from date of last payment. so it will fall off your credit report and will be like it never existed in 2 years.

if you pay this debt off it will reset the date of deletion to your last payment which means it will stay on your credit report screwing up your scores for 12 years total as opposed to just the normal 7 years.

go to www.creditboards.com and ask this question.

just dont do it unless your applying for a home loan and the bank forces you too. it will begone in 2 years otherwise if you pay it off or pay anything on it. it will haunt you for another 7 years

Answer 2

The CRA's will update as soon as the data furnisher reports it.
Unfortunately a paid negative is still a negative. Once it updates as being paid, it will make the account look newer than it actually is - not from re-aging, which is illegal, just from being updated.

If you had already paid and paid a collection agency, they may take their sweet time in reporting to the CRA's.

If you had not already paid, request that they remove the trade line upon payment. You should also request that they take a portion of the debt as "payment in full"

It's possible that you could be out of the collecting SOL for your state. If that's the case, you have a legal right to tell the collection agency, or original creditor, that the account is past the collecting SOL, and not pay.

If you are past the collecting SOL but want to pay, they will probably do pretty much anything you request. Since your voluntarily offer to pay would be the only way they "can" get paid on the account.

Just be sure that if you make a deal to pay a portion as payment in full - that you have a signed agreement with them saying that they are considering that payment as payment "in full".
In some states, making a payment will re-set the collecting SOL. If you have nothing in writing saying the debt is considered fully paid, you may find a process server at your door fairly fast. They would probably be quick to sue for the remainder of the amount.

With the collection agency/original creditor, you should do everything in writing and send everything certified mail return receipt

You should also order your credit reports and look over the trade line they have listed. Look for any inaccuracies and when you find them, send a dispute to the CRA's.

You might click on my profile and do some reading in the links I have listed. I also have a link that shows the collecting SOL for each state.