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mo-down
05-26-2005, 03:30 PM
Is it better to let an old negative account drop off or to pay it off? What happened was that I got 2 credit cards and fell way behind on payments. They are now listed as charge offs. One is for $150 balance and the other is about $935. So now I have this NEGATIVE credit score sticking with me. At this point, (thank God!) :D I am able to pay these off.

What is the smart option here? Should I pay these off or just let them eventually fall off of my credit?

Help!

tdhayes
05-27-2005, 11:42 AM
Pay it off so that it will fall off properly. If you don't pay it, they can almost always hang it over your head...as in it comes back up. Why have a negative credit score and pay astronomical interest rates when you can improve your score and credit history?...sounds like a no brainer to me...

synergy
05-27-2005, 10:59 PM
It depends how close you are to your 7 year mark. If you are 5 years away, pay it off...if you are 5 months away,wait it out.

It is illegal for a company to relist a debt after 7 years. They can try to collect but unless there is a judgement issued, they have no legal way to collect.

vicchnu
05-28-2005, 01:36 PM
To add: Be aware that paying off won't lift your score. That can only be done if the creditor completely have it removed, which you can negotiate. But like the other poster, It depends on what i need to do and how far out it is because at 5 years to me i probably wait the other 2 unless someone like a mortgage company tells me to pay it off.

mo-down
05-28-2005, 03:23 PM
Thank you for the replies. Actually I'm at the 5 1/2 year mark and just debating on whether to pay it off or just wait the other year and a half. I already have a car and a house so no big purchases are in my too near future. My DH did want another baby :D so a new house would be also in the plan. Although that's in a couple of years though.

lifeAgift
05-28-2005, 09:22 PM
:2cents:

Originally posted by synergy+May 27 2005, 04:59 PM-->
It depends how close you are to your 7 year mark. If you are 5 years away, pay it off...if you are 5 months away,wait it out.

It is illegal for a company to relist a debt after 7 years. They can try to collect but unless there is a judgement issued, they have no legal way to collect.

861609
[/b]

It's not illegal however for them to send it to an outside agency who can then attempt to collect the debt and list the new collection activity on your credit report.

Have integrity, if you made the bill pay the bill!!!</span>


<!--QuoteBegin-vicchnu@May 28 2005, 07:36 AM
To add: Be aware that paying off won&#39;t lift your score. That can only be done if the creditor completely have it removed, which you can negotiate. But like the other poster, It depends on what i need to do and how far out it is because at 5 years to me i probably wait the other 2 unless someone like a mortgage company tells me to pay it off.

862256


<span style=\'color:blue\'>Again operate with integrity as your guide.

Since you are able, immediately remitt payment for the debt along with a buisness style note explaining the reason for the bad debt. CC this to all three major credit reporting bureaus with an additional note that the debt has been paid in full.

Every month send a note to the credit card company and reporting agencies repectfully requesting that the debt be listed as paid off and dropped from your credit history ASAP.

It would be a shame if due to a dire financial emergency you needed to refinance your home and these two minor bills were thrown up in your face. Also a future employer might request to see your credit report as a part of their background check process. Then what???

Again, INTEGRITY!!!

SALAM :wub:

littlemama
05-28-2005, 10:37 PM
Again operate with integrity as your guide.

Since you are able, immediately remitt payment for the debt along with a buisness style note explaining the reason for the bad debt. CC this to all three major credit reporting bureaus with an additional note that the debt has been paid in full.

Every month send a note to the credit card company and reporting agencies repectfully requesting that the debt be listed as paid off and dropped from your credit history ASAP.


Again, INTEGRITY!!!

SALAM :wub:

862725
[/quote]

Just to be clear, when a debt is payed off, it will stay on your credit report for seven years from the date that you payed it off. But you can get it taken off if you ask the credit card companies to take it off. However they are not legally obligated to. Is this correct?

lifeAgift
05-28-2005, 10:48 PM
Right, no obligation to remove it at all!!
But always required to reponsed to any consumer correspondence within 30 days.
Actually I read somewhere where some derragotory credit issues can last up to 10 years. (probably bankruptcies)

the seven year thing is from "date of last activity", not 7 years from the day the account was opened or closed.

accborn
05-29-2005, 10:10 AM
Originally posted by lifeAgift@May 28 2005, 04:22 PM
Have integrity, if you made the bill pay the bill!!!</span>[/color]

<span style=\'color:blue\'>Again operate with integrity as your guide.

862725

This pretty much sums up my personal beliefs about finances and as far as integrity goes, life. JMO I make no statements about what you should or should not do, that is your personal choice.

LanaB
05-31-2005, 04:18 AM
Hey Life,

I have a question because I just got my credit report. So, the 7 year mark is from the date of last activity and not date reported? I just want to make sure because I&#39;m trying to clear up my credit and get old or incorrect things removed.

synergy
05-31-2005, 01:37 PM
Originally posted by lifeAgift+May 28 2005, 05:22 PM-->
:2cents:

Originally posted by synergy@May 27 2005, 04:59 PM
It depends how close you are to your 7 year mark. If you are 5 years away, pay it off...if you are 5 months away,wait it out.

It is illegal for a company to relist a debt after 7 years. They can try to collect but unless there is a judgement issued, they have no legal way to collect.

861609


It&#39;s not illegal however for them to send it to an outside agency who can then attempt to collect the debt and list the new collection activity on your credit report.

Have integrity, if you made the bill pay the bill!!!</span>


<!--QuoteBegin-vicchnu@May 28 2005, 07:36 AM
To add: Be aware that paying off won&#39;t lift your score. That can only be done if the creditor completely have it removed, which you can negotiate. But like the other poster, It depends on what i need to do and how far out it is because at 5 years to me i probably wait the other 2 unless someone like a mortgage company tells me to pay it off.

862256


<span style=\'color:blue\'>Again operate with integrity as your guide.

Since you are able, immediately remitt payment for the debt along with a buisness style note explaining the reason for the bad debt. CC this to all three major credit reporting bureaus with an additional note that the debt has been paid in full.

Every month send a note to the credit card company and reporting agencies repectfully requesting that the debt be listed as paid off and dropped from your credit history ASAP.

It would be a shame if due to a dire financial emergency you needed to refinance your home and these two minor bills were thrown up in your face. Also a future employer might request to see your credit report as a part of their background check process. Then what???

Again, INTEGRITY!!!

SALAM :wub:

862725
[/b]


If that new company lists a debt on your credit report that is past the 7 year mark from the last date of activity..it is ILLEGAL. That is called re-aging. They can attempt to collect after the 7 year mark all they want but you are in no way legally obligated to pay.

After the debts are paid, the credit card companies have zero motivation to remove a deragatory mark from a credit file.

Scrills
06-01-2005, 08:08 PM
unless they agree (in writing) to remove it, paying it off will re-age the tradeline and it will be there for another 7 years.

Scrills
06-01-2005, 08:10 PM
Originally posted by synergy@May 27 2005, 05:59 PM
It depends how close you are to your 7 year mark. If you are 5 years away, pay it off...if you are 5 months away,wait it out.

It is illegal for a company to relist a debt after 7 years. They can try to collect but unless there is a judgement issued, they have no legal way to collect.

861609



That 7 years of the DOLA (date of last activity). A payment is considered activity.

synergy
06-02-2005, 01:37 PM
@ Scrills- You are correct. One must be very careful when dealing with charge-offs. Trying to do the right thing could buy you another term in credit purgatory.

China
06-02-2005, 06:38 PM
Originally posted by synergy@Jun 2 2005, 01:37 PM
@ Scrills- You are correct. One must be very careful when dealing with charge-offs. Trying to do the right thing could buy you another term in credit purgatory.

868483


I&#39;d wait out those 18 months. :unsure: