paying off past credit mistakes
I was wondering if you have a couple unpaid accounts against your credit and they have been deliquent for some time, Is it still worth it for me to try to pay them back or should i just start from today forward by making smarter credit decisions and not make the same mistakes. If i don't pay them and start rebuilding my credit won't after a few years the deliquencies disappear and then only good things will show on my credit. Any advice would be greatly appreciated.
Pay it. Pay it pay it pay it. Reach a settlement and ask for a letter that states that once you make payment in full on the settlement ammount that they will report that it is paid to all 3 credit agencies. This will improve your credit score.
The common misconseption from what I have read lately is that people assume something like "I have a charge off on my account from 2 years ago. It will be off my credit report in another 5 years. Why bother to pay it?" It will in fact NOT come off your credit report if it is sold (Which it most likely will be). After those two years and no success by the Collection agency they will most likely sell your account to another agency. Upon the other agency recieving the account it will post BRAND SPANKIN' new to your report. I just talked to a guy that I work with that has something on his credit from 1978!!!
Odviously it won't completely fix the problem. However you will boost your credit score slightly and while it will still be on your report as "Charge Off/Paid" that little word after the / helps. It's about the best you can do with it unless you dispute it. Better than putting a band aid on a broken bone.
Hope that helps,
CaChinGuy
Well I agree the previous poster on 1 thing you should pay it. The rest I dont agree with and is not true. First off all negative trade lines will come off your report in 7 years except for BK. The will be removed 7 years from date of last activity. No matter who purchases the account for collection. The only time that it is not removed after 7 years is if you make a payment 6 years later. Then the date of last activity starts over again. So basically lets say that you have a bad credit listing 6 and half years ago. Dont pay a thing and in six months it will drop off. If you pay even a dollar the will reage the account and now its another 7 years before it will come off. The previous poster said that his friend still has a bad credit line on an account since 1978??? If this is true it is impossible. His friend would have to write the CRA's and demand it be taken off. This is the law according to Fair credit reporting act. The only thing that it could be would be a student loan.
Any questions please let me know at **Please See My Profile** I was a credit repair specialist for 10 years.
what is a BK?
BK is short for Bankruptcy.
Or maybe Burger King! Just kidding.
BK=Bankruptcy.
Verne
Tuxman is right, according to the FCRA (Fair Credit Reporting Act), they are not allowed to remain on your report for > 7 years.
BK is a bankruptcy, which remains on your report longer.
Pay it for sure!
However, if the collection goes into court and you get a Judgement against you, it can be collected and reported on. OR, if you buy and then try to resell/ refinance the house in the future, it could come up on a title search and would have to be paid, and of course it will be at the LAST minute when you don't have time to negotiate.
AMHIK