Is it true that if you pay a small amount each month to a creditor then they cannot put it on your credit report? I owe about 800.00 and some people have said that if you send in 10.00 a month to them they cant turn you over to collections but I dont know if its true. Thanks for any help!
2007-09-12 05:26:39 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
its not a credit card its for an apt. complex that we missed the last months rent because we bought a house
2007-09-12 05:36:20 · update #1
That's not necessarily true. They might decide they don't want to deal with nickels and dimes and send it to a collection agency. If you haven't signed an agreement that they will accept that amount in payments they can do what they want.
Try to get them to let you sign an agreement that you'll pay them $10 a month (or whatever you can afford). Without a written agreement they can demand all the money NOW and if you don't pay it they can ding your credit.
I would suggest you pull your credit report anyway and make sure they aren't putting a ding on it. Negative marks from apartments, auto loans or mortgages can hurt your credit more than any other ding (like a late payment on a credit card).
If you want to pull your credit you're welcome to come to my site and pick one of the companies I have listed that offer credit reports:
http://www.1-800badcredit.com
Good luck to you!
2007-09-12 06:43:35 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If you are paying less than the required minimum balance you can be in default on the account. After about 3 months of being in default they will turn you over to collections. Now, if you call them before and make arrangements that they will accept the $10.00 as a full payment for that month you would be okay. But they have to agree to this BEFORE you send the money. This goes for any type of debt. If it is an Apartment as you said you need to talk to them to make the arrangements as to the payments they will accept. Be sure to get any agreement in writting, and then follow through.
Paying any low amount without an agreement such as the $10 is the WORST thing you can do. Not only does this do nothing to your balance, as it probably does not even cover any fees or interest. It also keeps extending out the Statute of Limitations. This is the time period they have to file a suit against you for the money. Every payment you make, no matter how small, extends this out.
2007-09-12 05:41:17 · answer #2 · answered by OC1999 7 · 1⤊ 0⤋
If you do not pay at least the minimum amount then a creditor is REQUIRED to report when the account has gone 30 days past due, 60 days past due, 90 days, etc. What you need to do is call your creditor (I know that doesn't sound fun but it is the best thing to do) and work out a new minimum payment. This is very important to do because some creditors can raise your interest if your credit score goes down, depending on the contract you signed.
Good Luck!
2007-09-12 05:36:44 · answer #3 · answered by ms_quoted 2 · 0⤊ 0⤋
An earlier reply said "If you do not pay at least the minimum amount then a creditor is REQUIRED to report when the account has gone 30 days past due, 60 days past due, 90 days, etc. "
That is not true. No creditor is REQUIRED to report anything.
2007-09-12 07:06:53 · answer #4 · answered by likepepsi 7 · 0⤊ 0⤋
Your not making the minimum payment, so yes. That and the fact that if you're not making the minimum, your interest rate is probably going up. $800 at %20 interest/year would be about $13 a month in interest, a $10 payment doesn't even cover the interest you're accruing so you're still losing money.
Pay it off if you can, or make decent payments at least. Or just save your $10 and wait until you can pay it off.
2007-09-12 05:35:11 · answer #5 · answered by Krispy 3 · 1⤊ 0⤋
The creditor gets to decide if the payment arrangement is acceptable. You cannot just sent a little bit and expect them to wait over 6 years!
They can take your little payments and still put it on your credit report. They can also take you to court and get a judgment against you. Then they can garnish your wages for up to 25% or attach your bank account or lein your property.
2007-09-12 05:58:56 · answer #6 · answered by bdancer222 7 · 0⤊ 0⤋
If you missed rent then you may be reported to the credit bureaus. Whoever told you that is lying. Just pay it off and don't try to stiff anymore landlords.
2007-09-12 06:10:04 · answer #7 · answered by anon 4 · 0⤊ 0⤋
you have to pay the minumun requirement. if you cannot make that payment, you should call the creditor and see if you can work something else out.
2007-09-12 05:33:16 · answer #8 · answered by **STARR** 4 · 1⤊ 0⤋
You have to pay according to the contract you signed. Read the fine print.
2007-09-12 07:07:58 · answer #9 · answered by heybulldog 5 · 0⤊ 0⤋
if you do not make minimum payment as agreed upon they can report you
2007-09-12 05:31:26 · answer #10 · answered by Anonymous · 1⤊ 0⤋