ok i have about 5 accounts open for collections they expire off my credit report in 2011 my credit score is 580! here is my question, i just got off the phone with one off the collections peeps and am about to settel 3 of my acounts and now i think mabye i shouldnt they told me that they cant take it off my credit report but they will mark it as paid so does that push the experation date back another 7 years on it? Should i settel this with them or just let it expire? does it help your credit score if it gets marked as paid or does it not change?
I know it is just right to pay it but if it will stay on there for another 7 years from the paid date whats the point?
and finaly would it hurt me to get a credit card off my gfs account andd would that help my credit?
or can you give me another good way to do this. also do cell phones help build credit?
sorry for the bad spelling im in a rush!!! Thanks
2007-04-17 14:00:29 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
A paid negative is still a negative.
If you pay, they will not remain on your reports for "another" 7 years, they will fall off at the original 7 year mark.
Stay Off The Phone !!!
With collection agencies - do everything in writing and send everything certified mail return receipt. Never sign your name to the letters, only print your initials or type your name in. (signatures have a nasty habit of jumping from one paper to another)
Have you ordered your credit reports to see if they are reporting inaccurately?
Have you even sent the collectors a debt validation letter yet?
If not, you should before you start discussing payments.
With your validation letter, find out if the amount they are requesting is the legal and true amount and has not been illegally inflated. That you are still within the collecting statute of limitations. That they are licensed and/or bonded in your state if your state requires it. That they even have the legal right to collect the debt.
After you receive the green card back from sending the validation letters, send a dispute to the credit reporting agencies for any violations the collectors are listing.
Check the collecting SOL for your state.
If you are past the collecting SOL for your state, you are not legally bound to pay.
The collecting SOL and the reporting period are two seperate things. The reporting period is how long they can report.
The collecting SOL is how long they can collect and still be able to sue or not.
If you are past the collecting SOL, they cannot legally sue but they can continue to try to collect - until you either pay or you inform them the account has passed the legal SOL to collect.
If you are past the collecting SOL for your state and want to pay, you can demand to pay a portion of the debt as "payment in full" and that they delete the trade lines they have placed on your reports upon payment.
If you are past the collecting SOL, you have the upper hand in the negotiations since your offer to pay is the only legal way that they will have to get any money for the debt.
If you are still within the collecting SOL, you can still request to pay a portion of the debt as "payment in full" and also request that they remove the trade line upon payment.
They make deals like that every day. Just keep hammering at them about deleting.
When you mentioned about getting a credit card off of your girlfriends account - you were talking about having her add you as an authorized user? If so, then yes it will help your credit. Just be sure to ask the card company to report on your credit when your girlfriend calls to add you.
In her best interests, she should request that no AU card be sent to you.
As for the cell phone, they often create more problems than they solve. I wouldn't bother with it.
To find the collecting SOL for your state, click on my profile and click on the states SOL link I have listed.
You might do some reading in the other links I have listed - the FDCPA, FCRA, etc. and also click on the last link and do some reading in there.
2007-04-17 19:50:33 · answer #1 · answered by echo 7 · 0⤊ 0⤋
Your payment history counts for 35% of your score. An unpaid collection account is one of the worst things that can be listed, it is really just above a bankruptcy or repo.
Yes once you pay the collection account it will be on there for another 7 years, but that is actually only 3 additional years. In the mean time it will show as paid and should give you an immediate small bump up. How much of an increase depends on a lot of other factors, such as how many you still have in collections. Then after a few years if you have perfect history since collection accounts will have little negative effect on your score. But if you keep the unpaid collection account that will continue to harm you. Now if you are asking if you just pay off 3 of the 5, that probably will not help a lot. It will show you paid off 3, but it will still show 2 in collections which is not good.
The other thing you have to know is that you are still most likely within the Statute of Limitations, so they can still sue you for the money. You will not only owe the money anyways, but any additional interest and fees that accrued since.
Cell phones are generally not reported to Credit Agencies unless you do not pay and have it sent to collections. Even if your girlfriend has perfect credit and you are added as an authorized user the unpaid collections on your report will still keep your score down.
2007-04-17 14:13:24 · answer #2 · answered by OC1999 7 · 1⤊ 0⤋
They could still sue you and get a judgment. This will lower your credit report even more.
Also they could show "settled in full" on your CR instead of Paid in full. This hurts, but not as much as it being on your account in the first place.
Cell phone companies do not help with your credit.
2007-04-17 15:46:17 · answer #3 · answered by Zzyzx 4 · 0⤊ 0⤋
A paid account is always better than an unpaid one. 4 years is a long time to wait and be seen as a nonpayer. Granted, accounts stay on 7 years, but eventually this will help.
Cell phone accounts can only hurt you because cell companies don't routinely report to credit bureaus.
Getting a card in your gf's name won't help your credit score, but if you mess up, it can certainly hurt her score. Think and don't take on debt that you can't absolutely handle.
2007-04-17 14:09:57 · answer #4 · answered by Still reading 6 · 0⤊ 2⤋
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2016-12-29 05:39:57 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Make a written agreement (fax is convenient) that you will settle for example 25% of the debt if they mark the account as "closed account paid in full". Not "paid collection".
The clock for the SOL (statue of limitations) could start over if you make a partial payment. Depending on your state...
http://www.DisputeDemon.com
2007-04-17 14:30:15 · answer #6 · answered by CreditScoreBooster 2 · 0⤊ 0⤋
If it was me I would wait until 2011 until they come off... because nothing is going to change. They will have them marked as paid, as thats is the only thing that will change.
2007-04-17 14:06:20 · answer #7 · answered by mphsgurl79 3 · 0⤊ 0⤋
Listen to echo, she is right. also go to creditboards.com
The 7 years start 6 months from the date
of first delinquency , not the date the ca reports it.
2007-04-18 13:36:21 · answer #8 · answered by lectric lady 2 · 0⤊ 0⤋
f*ckem keep your money and just dont use credit until 2011. if you do pay them you will still be disappointed with your credit score so why bother.
2007-04-18 03:10:07 · answer #9 · answered by Anonymous · 0⤊ 0⤋