i made payment arrangements with a creditor 100/month do they have to update my credit report each month or can they wait until it is paid in full to update my credit report. I plan on requesting a letter stating the debt has been paid off when I make my last payment. In the meantime will they update my payment with ea. payment i make or not???
2007-10-25 09:49:19 · 6 answers · asked by nikkylyn 5 in Business & Finance ➔ Credit
Most likely, no. Once you have paid off the charge off, your credit report will show that you had a charge off, but that it was paid.
2007-10-25 09:53:47 · answer #1 · answered by Teresa 3 · 0⤊ 1⤋
Once you start to make any financial payments on the charged off account, this resets the clock on the statutes of limitations and will be reported every month to one of the three Credit Agencies.
Your only legal right is that once the original creditor charged off the debt, they can no longer demand interest. Even after you have paid this off, it will stay on the report depending upon your home states laws regarding SOL.
However once paid, it will not be listed as a "derogatory" entry.
I invite you to join the following Yahoo group where you may find information to help you with this situation.
http://finance.groups.yahoo.com/group/dontgetrippedoff/
2007-10-25 10:46:54 · answer #2 · answered by Sgt Big Red 7 · 0⤊ 1⤋
They will probably update it with a note attached to the trade line - charge off but making payments - to show you are making payments. It will remain an R9 or I9 but the balance will decrease. When it is paid it will show a 0 balance. Doing this is a great start at paying off old debt and shows you are doing so.
I read credit reports on a daily basis.
2007-10-25 11:00:04 · answer #3 · answered by gogo7 4 · 0⤊ 1⤋
They will update your report. Make sure you dispute the charge off with the credit agency as well. Make SURE you get a letter stating that you have paid off the account.
2007-10-25 11:34:10 · answer #4 · answered by SandraD 3 · 0⤊ 1⤋
You should of gotten a letter stating they will remove it from your credit report upon payoff. As it stands now, they will mark it paid, but it sill still remain on your report for 7 years, only annotated that it has been paid. So your credit will not rise because of paying it.
2007-10-25 10:05:13 · answer #5 · answered by Pengy 7 · 0⤊ 1⤋
No they won't update your credit. I hope you have that payment agreement in writing. Collectors have been know to lose verbal agreements.
2007-10-25 09:58:38 · answer #6 · answered by bdancer222 7 · 0⤊ 2⤋