I haven't paid anything on it for about a year now. Somebody told me that the damage is done already and my credit won't get any more worse from that particular account. Is that true?
2007-11-29 02:23:19 · 7 answers · asked by Agent 47 1 in Business & Finance ➔ Credit
If this debt is charged-off credit card debt, simply cutting them a check and paying them off in of itself wouldn't help you a lot. Charge-offs can stay on your credit file for up to 7.5 years....paid or unpaid....Your account would be updated to "Paid" but the R9 charge-off notation would remain and you credit would still be damaged.
You can make a "Pay for Delete" offer to the creditor, where they agree to delete the charge-off nation (IN WRITING) upon receipt of your money. If they only agree to change it to "paid as settled" it's not really worth it. If you do this get all terms IN WRITING before giving them one cent. Be extra careful in dealing with collection agencies. Insist on getting a signature from a confirmed, real supervisor from any collection agency....These people tend to be deceitful and will do anything to get your money...
2007-11-29 04:56:08 · answer #1 · answered by CatDad 7 · 1⤊ 0⤋
What you should do depends on how old the account is. If it is fairly new, and have the $ to pay it off, a paid collection is better than a collection account on your credit file. If it is several years old already, then you may want to just let it be. Unless a judgement is filed, the account will fall off your credit after 7 years. If you have a 5 year old collection account and you pay it off, it will stay on your file for another 7 years as a paid collection account.
2007-11-29 10:28:33 · answer #2 · answered by kta kta 2 · 1⤊ 1⤋
I have to agree with 67 Shelby GT.
Since you said you paid on this account about a year ago, the statute of limitations was reset when you made that payment so the account is no where near being exempt from court action by your creditor.
If they take you to court and get a judgment they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this activity will show on your credit for the next 7-years making it very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.
2007-11-29 12:12:11 · answer #3 · answered by ? 7 · 2⤊ 0⤋
Once it is classified as a collection account, the damage has been done. The "sting" of the collection (on your score) subsides after a year or two...BUT
If the collection is turned into a judgment or a lien, it will hurt your score BIG time if you just ignore it. Personally, I'd try to settle with the collection agency or go on a payment plan to take care of the balance. You don't want it to escalate into something uglier.
2007-11-29 11:46:53 · answer #4 · answered by YSIC 7 · 1⤊ 0⤋
The damage has been done. Your best bet is to work out payment schedule with the collection agency, pay it off and eventually your score will rise (a little but better then down).
If you ignore them, they could get a judgment against you and then garnish your wages.
No matter what you do, this will still appear for 7 years even after you paid them off.
2007-11-29 12:09:45 · answer #5 · answered by Sgt Big Red 7 · 0⤊ 0⤋
once on your credit report the damage is done.
2007-11-29 10:31:35 · answer #6 · answered by Jan Luv 7 · 0⤊ 0⤋
depends on whether the collection was assigned or
purchased the debt.
www.creditinfocenter.com
buddhibbs.com
2007-11-29 12:47:47 · answer #7 · answered by Anonymous · 0⤊ 0⤋