I heard some where that after so long you shouldn't pay because it is going to be on your credit anyway and it may be better to just wait 7 years to they come off your credit report. What should I do?
2007-05-29 06:15:52 · 7 answers · asked by bermuda0728 1 in Business & Finance ➔ Credit
If you have the money to pay in full or settle your outstanding debt, pay it. It's easier that way.
Be advised that your state's regulations play a role here....just because it falls off your report does not automatically mean that the collector is finished trying to collect what you owe.
Also, if you are looking to apply for a major loan (such as a car or a house), then you REALLY want to go ahead and clean up the derogatory accounts. A paid collection looks much better than an open one....lenders will be none too impressed if you tell them "I'm just waiting for it to fall off."
Good luck!
2007-05-29 08:09:36 · answer #1 · answered by YSIC 7 · 0⤊ 0⤋
An old debt that is unpaid looks worse on your credit than one that has been cleared up. Creditors will see that you just let those go, and didn't attempt to pay. Check the Fair Debt Collection Practices Act. That tells you how long a debt can be collected on, and even reported on your credit report. There is also a sense of responsibility at issue. Someone was nice enough to extend you credit. You do owe that money. Also, there is the possibility you could be sued. I used to work in collections, and we used to get wage garnishments all the time. It's even possible to attach a lien to property. Companies and agencies will strike a deal with you by taking money off the amount owed. You should read that act, and think about what you want to do. Also, just because a debt is supposed to come off your credit report, doesn't mean it will. You have to keep up on that - it's time consuming and can be frustrating. check out annualcreditreport.com. You get a copy of your credit report from all three credit reporting agencies. Order them all at once the first time, compare them, and submit corrections. I even paid for my credit score from each one the first time. Then, every year, I order 1 report from 1 company every 4 months.
2007-05-29 06:32:25 · answer #2 · answered by Dawn B 1 · 0⤊ 0⤋
Definitely pay off your debts. It will come back to bite when you are making any major purchases such as Mortgage, car and employment. My friend just got rejected for a nice job at a hospital for the same reason. Her debts are about 7 years old and since she had to handle money they told her not to come to work 1 day before her start date.
2007-05-29 07:00:53 · answer #3 · answered by Bettyboop 2 · 0⤊ 0⤋
My personal belief is that you should always pay your debts no matter how old.
I had one a few months ago that the S.O.L. was about to expire and I could have very easily just said go away and there would have been nothing that they could have done. But because it was a valid debt I sent them a check and paid it in full.
2007-05-29 06:36:32 · answer #4 · answered by ? 7 · 0⤊ 1⤋
it depends on the type of debt and what your state laws are. in order to clean up your debt, sometimes it is better to wait it out, other times, you may feel obligated to pay back the amount. go read up at www.creditboards.com to find out what you should do. creditboards is completely free.
2007-05-29 06:35:08 · answer #5 · answered by Anonymous · 1⤊ 0⤋
So you received a service or good from someone and think its better to not pay them and let it fall off your credit report?
Thats bad Karma even if the math works out. If you have money now and did not have it before then start paying off old debts, your life and credit will be much better.
2007-05-29 06:25:31 · answer #6 · answered by Joseph T 4 · 1⤊ 6⤋
Check out myfico.com
They have a lot of information out there on this subject and they have a great forum site.
2007-05-29 07:56:45 · answer #7 · answered by lizabet17110 3 · 0⤊ 0⤋