Hello, I have a valid debt of $1,000 owed to a bank from five years ago that is not on my credit report. My credit is perfect right now.
I am looking to buy a house. Should I call the collection agency and pay off the debt... or just leave it alone. I am afraid if I call, it will be placed on my report. But I am afraid if I do nothing it could be too. Tough call. Any advice.
I believe the agency made a mistake not placing this on my report
Thanks.
2007-10-11 11:12:57 · 7 answers · asked by Andrew L 1 in Business & Finance ➔ Credit
Two things. First it does not show on your report now so whats the big deal. Second if you contact them it will start the statute of limitations over again and it could show up on your report.
2007-10-11 11:21:44 · answer #1 · answered by ? 7 · 1⤊ 0⤋
Have you checked all three credit reports? It might be on one but not the others.
I suggest you keep a little more than $1000 handy just in case it rears it's ugly head right before closing. But otherwise let sleeping dogs lie for now. You can do the moral thing and pay the debt after you close on the house.
By the way, paying a 5 year old debt will NOT re-start the reporting period. The reporting period is 7-1/2 years. People confuse the reporting period and the Statute of Limitations (SOL), the time limit on suing. Payment and even acknowledgment of the debt can restart the SOL.
2007-10-11 18:51:45 · answer #2 · answered by bdancer222 7 · 0⤊ 1⤋
You should leave it alone. Don't do anything with it. If you do , it will negatively effect your credit. Time is a factor with your credit score...Ex. If you have a late payment 8 years ago, it won't have much affect on your credit, but if you had a late payment on the same loan just last month , that late will have a negative effect on your credit. So , in your case, if you do anything with the debt, you will reactivate ( or re-set) the last reported activity on the debt to this month. That would not be good for you. Even though you think you are doing the right thing, it's not a good thing as far as your credit score goes!!
Good Luck!!!
Paying it will definatly effect it. If you read the report. there's a collum marked DLA (date of last activity). If you pay the debt. The date you pay it will be the DLA., if you do nothing the DLA will be however many years ago the last activity was reported.
2007-10-11 18:29:02 · answer #3 · answered by ijokey2000 2 · 0⤊ 1⤋
Go to your bank and ask if you can make a recovery payment so that the account can get up to date to the point where you no longer owe them anything. Be sure to keep the receipt, if the bank can take the payment, in your important files just in case some collection agency tries to scam you. This is the best solution because then you don't have to deal with collection agencys or the court system.
2007-10-11 19:05:24 · answer #4 · answered by oceanpotion™ 3 · 0⤊ 0⤋
I made the mistake of not paying a $300 bill to a bank. It wasn't showing up on my credit report but the next thing I knew I got a summons to appear in court! If you can pay it, I would unless you want to go to court and have it garnished from your wages.
2007-10-11 18:21:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Go DIRECTLY to the bank and pay off the 1,000.00,
you may not be on your credit report but it may be on
Chexsystems com and that could hurt you even though
you have good credit
2007-10-11 18:26:20 · answer #6 · answered by Anonymous · 0⤊ 1⤋
dont do anything until you are prompted. the worst thing the new lender will do is have you pay your creditor $1000 at time of closing.
2007-10-11 18:52:11 · answer #7 · answered by moneydoktor 2 · 0⤊ 0⤋