Pay it off VS Fight it VS Let it Age Off?

BMT...Don't pay anyone to dispute your inaccurate accounts...You can do that on your own for free. We can walk you through the process if needed.

Jessi,

Thanks for the response.

I am interested in hearing more, because as I said I have had success removing things from my report..

However, it took many many hours and days though.

The process was very rewarding and it gave me loads of self-esteem and less fear of the creditors and the dreaded credit score.

That being said...

Now that I have educated myself on how to do it, I think that $40 a month is worth it.That way I don't have to spend more time writing letters, going to the post office,the hours on the phone trying to get to the right person.

I can use that time to work and create income.

Your thoughts?

Plus, I still want to find out how much paying off a debt that is still going to sit there for 3-4 more years affects my score?

Hi

You are concerned about the accounts in your file that are 4-5 years old and will not go off before 7 years reporting period. Check the SOL of these accounts as per your state. It might have expired if there is no payment activity within the SOL period.

Assuming the debts to be legitimate ones and are past the SOL period, it is your choice to pay them or leave it in your file till it gets off.

Paying off the account will definitely put a good impact than not paying it. Since the account will remain for the next two years and you are looking for a house next year, you will like to show a good credit history to your new lenders.

Keep in mind that no agency can force you to make a payment if the debt is past the SOL period. You have to notify in writing about the expiry and keep documentation.

Thanks for the reponse JustMe.

Can you clarify?

If I pay off one at a time? Does my score go up by 5 points? 1 point? 20 points?

I know that I have to start showing GOOD credit to really improve my score, but how much does it go up when something gets removed versus how much does it go up when something gets paid?

The process of calculating FICO scores is very lengthy, complicated and perhaps known to no one. The data from your credit report is plugged into software and it results out as scoring number. The three bureaus use different software, so the results vary from each others. It's upon the lender which report they will review.

Look into this proportion that ascertains your credit scoring model

35% - Your Payment History
30% - Amounts You Owe
15% - Length of Your Credit History
10% - Types of Credit Used
10% - New Credit

OK, that helps some.

As far as the SOL goes, I am not worried about that, because these companies have not been writing me personally looking for the money, if they were, I will send them letters about the SOL passing.

However, they can still sit on my reports until the 7 years is up.

Based on what you are saying. I think I will go ahead and pay them.

Go ahead and pay off the debt if it is legitimate. Your file will improve to some extent. Keep in mind that SOL gets renewed once you show payment towards the account. Since you are looking for a house, you will like to enhance your scores. Pay off the account after everything is in front of you in writing.

well I just found this site today. I have been trying to repair my credit after some bad decision back in 1997. One of which let to a judgement against me which I am not trying to pay off.

Well I didn't know about the SOL so when I paid for a copy of my credit report and saw a CA that I know I owed, I called them and set up a payment plan.

Sooo, will it look better on my credit report that I am now making payments?

Would it have been much worse to have given the CA a SOL letter stating that I was not going to pay the debt?