2007-05-07 10:09:05 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
A paid negative is still a negative.
If it is with a collection agency, send a debt validation letter first. Make sure that they have not illegally inflated the amount, that they are licensed and/or bonded to collect in your state if your state demands it, that they even have the legal right to collect on that debt (it's not unheard of for a collection agency to try and collect a debt they have no legal right to collect on)
Send everything by mail and sent certified mail return receipt.
Never sign your letters, print your initials or type your name only.
If you plan to pay make sure that you have, in writing, an agreement that they will delete the trade line upon payment.
It cannot be re-aged to report longer than the original time - but, when paying without deletion they will "update" the trade line (updating is not re-aging) And the updated trade line will "look" newer than it actually is. (which will hurt your scores)
If you have an agreement to pay a portion of the debt as payment in full, be sure to have that in a written and signed agreement from them.
If you don't, you will probably see them or another company try to collect the remaining portion. And, if you are currently past the collecting SOL and live in a state that allows the collecting SOL to be re-set upon your written agreement to pay, they may legally be able sue for the remaining portion. (which they legally cannot do if you have it in writing that the payment you are making is agreed by them as payment in full)
If you are currently past the legal collecting SOL for your state, they can no longer legally sue you for the debt and you can demand to pay a much lesser amount, since your offer to pay is the only way they can see a dime of it.
And if it is past the legal collecting SOL in your state, you do have a legal right to send them a SOL letter telling them the debt is no longer legally collectible.
2007-05-07 11:54:03 · answer #1 · answered by echo 7 · 1⤊ 0⤋
Paying off delinquent debt will improve your score. It may not be a dramatic increase, but it will increase. Anytime you reduce your debt balances versus the amount of credit you have available, the FICO scoring system will see that as a positive. The delinquent accounts will stay for up to 7 years, but I've seen people with past bankruptcies in the 700s.
By the way, the clock does not start all over again when you talk to a creditor about an old debt. The clock starts from the last time you were late with your payment, and ends seven years later. For example, if you were late on June 2005, then that will not come off your report until June 2012, regardless of when you last talked to the creditor. If it is a charge off, it will remain as a charge off for 7 years from that charge off, regardless of how many times it may have been sold to another creditor.
If you are going to payoff any old accounts that are currently open, I would advise you not to close the accounts. Leave them open, because length of open accounts also affects your credit score. Good luck.
2007-05-07 10:22:49 · answer #2 · answered by T Taylor 3 · 0⤊ 0⤋
Actually, it is very common for creditors to hire collection agencies to collect. Creditors don't always sell bad debt to collection agencies. However, it is very odd that a cell phone company would only assign a 5 year old defaulted cell phone bill. It is likely beyond the Statute of Limitations (SOL), the time to file lawsuit. It probably falls under the 4 year UCC SOL. Cell phone companies typically just bundle up unpaid accounts and sell the whole thing to zombie debt collectors. In any case, the collection agency reported the debt to the credit bureau and they are the only ones who can remove it. The original creditor simply does not have the ability to remove the item. There is something strange about this whole deal. You might just be better to wait out the 2 years for this debt to age off your credit report. There certainly is no reason to pay the amount in full -- they won't win a lawsuit since the debt is beyond the SOL. Paying, even a settlement, won't improve your credit or score.
2016-05-17 21:46:36 · answer #3 · answered by ? 3 · 0⤊ 0⤋
It depends on how delinquent it is. For example, if the debt is over a year old and the original creditor has charged it off and has not turned it over to a collection agent, then paying on it will probably hurt your credit score.
It will definitely cause the debt to show on your credit report longer. For example, my understanding is that many times a lender will contact you at close to the 7 year mark to try and get it cleaned up. However, if you agree, then the 7 year clock starts all over.
2007-05-07 10:20:45 · answer #4 · answered by edwardogden2000 3 · 0⤊ 0⤋
Not necessarily, but it will stop it from going down any more. Your credit score goes up whenever you make debt and/or loan payments on time.
2007-05-07 10:12:40 · answer #5 · answered by pcolaengr1 3 · 0⤊ 0⤋
might not improve it by much
but it looks better that is paid off than being unpaid.
paying debts on time improves it a lot faster.
2007-05-07 10:12:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes.
2007-05-07 10:17:25 · answer #7 · answered by fuzz 4 · 0⤊ 0⤋
Over time it will. But you need to make sure you make all the payments on time.
2007-05-07 10:14:37 · answer #8 · answered by brian48692003 2 · 0⤊ 0⤋
yes over time
2007-05-07 10:24:00 · answer #9 · answered by shorty21 5 · 0⤊ 0⤋
Go to the forum section of http://creditboards.com and READ READ READ
2007-05-08 02:39:34 · answer #10 · answered by starfairy181 2 · 1⤊ 0⤋