... will it help improve my credit score in any way at all????
2007-04-12 04:50:55 · 7 answers · asked by Unknown 1 in Business & Finance ➔ Credit
yes, but it will take another 7 years beyond when you pay it
2007-04-12 04:54:19 · answer #1 · answered by Jill knows best 4 · 0⤊ 0⤋
If the account is charged off the company legally no longer owns the debt, and if you attempted to pay them there is a good chance they would just return the money to you. Most likely they have sold it to an outside collection agency and you will have to deal with them.
As long as you have an account in collections it is going to kill your credit report. But once you start and continue to pay it, that will improve your credit report over time as it shows you are trying to be responsible. But before you send any money to them you need to have an agrement in writting, and make sure it is something you can manage to pay. As if you go off the payment plan everything starts all over again.
A couple of things you have to consider. Negative items will remain on your report for 7 years from the date of your last activity. This is the date you became delinquent on the account, and not the date the account was opened. So if you did not become delinquient until say December 2006, the 7 years start from there. However, if you are still within the SOL which is usually 3-10 years depending on the State and type of debt, they can still file suit for the money. If you are outside of the SOL then they can keep asking you for the money, but there is nothing legally they can do to get it.
2007-04-12 05:45:26 · answer #2 · answered by OC1999 7 · 0⤊ 0⤋
First off, I'm a loan officer with a mortgage company so I deal with credit reports every day and I do know what I'm talking about. You can pay it off slowly over time but I wouldn't advise it. The company - i.e., credit card has already charged you off, meaning they received a tax credit for their loss.
If you make payments - it re-opens the account under date of last activity. That is the same as admitting the debt is yours and past due.
If you wish to pay on it, I would make them a lump sum settlement of about 20% of the debt. ie, if you owned $1000, offer them $200. If they say no - asked to talk to their supervisor. Once the debt is charged off, any amount of money they get is gravy.
Insist on a settlement agreement for the account (in advance) and after you pay it, with a check, email the agreement and cancelled check to the three credit reporting agencies and request a rapid re-grade. Your credit report with say, settled for a reduced amount, but paid is paid in credit land.
2007-04-12 05:00:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
no it will only reactivate the activity and stay on your credit report for another 7 years.
the info stays on for 7 years from the date of last activity. ie: payment. so if you haven't done anything for 7 years on that account it is getting ready to be removed.
you will be wasting your money. best to pay off more current past dues.
2007-04-12 04:56:49 · answer #4 · answered by jezbnme 6 · 0⤊ 0⤋
The account will show activity, and over a long period, can help establish a payment pattern.
However, it would have to be a long period of payment pattern to outweigh the chargeoff.
2007-04-12 04:54:09 · answer #5 · answered by Stuart 7 · 0⤊ 0⤋
yes but it will take time
2007-04-12 04:53:03 · answer #6 · answered by shorty21 5 · 0⤊ 0⤋
no
2007-04-12 04:53:43 · answer #7 · answered by caleb w 1 · 0⤊ 0⤋