when a debt is unpaid it goes into collection. I have one on my file that is two years old. If i don't pay it - what happens?
should I pay it ? is it correct that collections which are more then two years old do not impact credit score much any longer?
thx! help appreciated!

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If you don't pay off the debt, the creditor may sue you and bring judgment against you to recover it. This judgment stays in your credit report for seven years and adversely affects your credit score. If the debt has gone to collections, get it validated from the CA and pay it off.
So long as the delinquent account stays there in your report, it will affect your credit score. Normally, it stays there in your report for seven years and 180 days from the date of delinquency.

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and loan companies take even old collections into account?thx

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Correct me if I am wrong here if this is how bad credit works..

Bob first goes delinquent on his Visa on 10/1/2009.. the 30, 60, 90, 120 days late reportings come and go and at that point the OC turns it over to internal collections... During this time the bad credit 7 yr countdown has begun retro to 10/1/09. After failed attempts by the OC's orginal collections dept the debt is charged off/sold to a CA whom reports this again on Bob's CB file as an active collection account. Though the CA does retain the right to sue ( withing the legal guidelines off the state bob lives in ) bad credit does have half lives too it... After 2 years 10/1/2011 though still derogatory and has an effect on the score... its not as bad as it was... after 4 years.. though still derogatory most of the damage is over with and during years 5, 6, 7, this bad credit doesnt hurt the score as much with barely making a dent in it during the last year other than having a derrogatory mark on One's file.

So the worst damage comes in years 1-2, still bad but not the worst damage is in years 3-4, with declining impact as years 5, 6, & 7 go by right?

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so, my debt will be 2 years old in august. should i pay it at all? its 500$.

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if you have the money, go ahead and pay it if its in sol of your state and if they(ca) can validate it...but personally i would try to settle if the previous conditions were met...buy paying it will NOT help your score..only time will help score and good standing accounts...one other thing to try might be a pay for delete..if ca accepts, that could help your score...good luck..

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i have sent them an offer today to pay in full for delete. if they do not accept what should I do?thx

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anyone? thx

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I have a unsecured line of credit with a bank. I have been unable to pay on it for 5 months. It is for a large amount. If they sell it to a collection agency what happens?

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I have a unsecured line of credit with a bank. I have been unable to pay on it for 5 months. It is for a large amount. If they sell it to a collection agency what happens?

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