I went through a terrible divorce seven years ago. My credit went through the ringer. I rebuilt myself back up, but I have a number of old debts that are really lowering my score.
small credit card debts that went to collections and were bought out by agencies. I ran my credit and it says that most of these are scheduled to be removed between 11/07-2/07. They were charged off by the orginal company.
I could pay them at this point, but I fear that by paying them now - it will renew that account and keep it on for another 7 years since that would be recent activity. I am better off just letting them come off in time at this point?
2007-05-30 12:33:27 · 4 answers · asked by bjmarchini 2 in Business & Finance ➔ Credit
I have 8000 in student loans that I have been paying on time as well as an 8000 car loan. I overpay my payments.
2007-05-30 12:37:47 · update #1
I would let it go. It'd be opening a can of worms to try and pay it now.
2007-05-30 12:43:02 · answer #1 · answered by Jess 7 · 1⤊ 0⤋
Let sleeping dogs lie. Paying on it now would only hurt your credit, as it makes the activity look more recent.
Each state has their own statute of limitations on collecting debts (avg. about 6 years). And since it's been this long and neither the original creditor nor a collection agency have been actively seeking payment, I seriously doubt they're going to bother with it now.
Gus and Ninja - Paying off old debts does not restart the reporting period; that's illegal.
However, the state SOL can be reset by taking certain actions.
**GUS** - Oh, unknowledgeable one, YOU need to read the Fair Credit Reporting Act, Section 605!
Nothing, and I mean nothing, can reset the 7 yr. reporting period.
2007-05-30 14:42:17 · answer #2 · answered by Celeste 6 · 0⤊ 1⤋
If you pay it and the creditor updates the account on your credit report the item will remain on your report for 7 more years. Do not pay it!
Don't believe Celeste. She does not know what she is talking about. I've had it happen to me and it took an act of congress to get the item removed. I speak from experience so ignore those with good intentions and bad advice.
Good Luck
2007-05-30 13:08:20 · answer #3 · answered by GUS 4 · 0⤊ 1⤋
Don't pay it. To do so will reset the time that they can keep it on the report. Also, don't even admit that you have the debt. So much as acknowledging the debt is enough to get it reset.
Making a payment is you saying "I know I owe this".
2007-05-30 14:22:12 · answer #4 · answered by ninja_sprout 2 · 0⤊ 1⤋