paying old debt

Date: Wed, 02/27/2008 - 17:27

Submitted by anonymous
on Wed, 02/27/2008 - 17:27

Posts: 202330 Credits: [Donate]

Total Replies: 2

Quick question. I have a couple of old credit cards that have been charged off and are now in collections. The last activity on most of these accounts was in 2003 or 2004. Most are about to be past the statute of limitations for my state. So my question is: Will my credit score be better if I let these run off my credit report (in the next 3-4 years) or would it be better if I paid them off now? Help!

Welcome to the forum Sarah, I'm not entirely certain of the inne

Welcome to the forum Sarah, I'm not entirely certain of the inner machinations of the big three, someone with more knowledge will be along to help you shortly.

lrhall41

Submitted by JCEMT on Thu, 02/28/2008 - 04:21

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one of three things can happen.... 1--they could choose to su

one of three things can happen....

1--they could choose to sue you over a debt, and if they win you will get a judgment entered on your credit file--that is very bad and stays on for 10 years.

2--it can stay on like it is--showing that you still have a balance owed, and it will remain bad like it is now.

3--you can pay them off, in which case, the creditor is likely to list it as a paid collection. While you may be able to reason with some local bankers that paying the debts off shows responsibility, it will still hurt your credit scure the same way as #2 above....

There is one other option--if you contact the current creditors on those debts, you may be able to convince them to delete them from your credit reports in exchange for you paying the balance owed in full. HOWEVER, if you do this, you MUST make sure to get it in writing that they have agreed to remove them, because many CA's wont do that.

lrhall41

Submitted by skydivr7673 on Thu, 02/28/2008 - 23:21

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