I got a really great deal from a collector for an OLD charged off account. Should I pay it?

[Anonymous]

Hi everyone, I am completely new here and I am looking forward to being an active member of the community. Here is my question.

I had major surgery in 2003, and I had no health insurance. As a result, I have several different medical bills on my credit report that have been charged off.

Well today, I got a letter from a third party debt collector saying that the bill I have for $1900 can be settled for $190, which is 10 percent of the original amount. My first instinct of course is to pay it, but I wonder how this will affect my Fico score. It has been AWFUL for years, but thanks to some student loan consolidations as well as a secured auto loan through my bank, I have gotten it up to 602. Would paying this thing off make my score drop?

Also, I have been wondering about how things appear on your credit report for seven years. Let's say I pay this tomorrow, February 12th. Since this is new activity, would paying off this charged off account appear on my credit report until February 12th, 2015? Or would it drop off in 2010, because it first became delinquent in 2003?

Any help would be greatly appreciated!

[Anonymous]

Ask them if they would be willing to delete it off your credit report(s) with in 10 days if you pay this amount. Must be in writing from them so I just learned. Then its completely gone.

Message Edited by ilovepizza on 02-11-2008 09:52 PM

[Anonymous]

in writing...or tell em to go fly a kite.

[Anonymous]

Thanks for the replies! Okay does contacting them renew anything? Does that change the date of anything that would make this an "active" account or something?

In other words, by contacting them in any way, does that affect my fico score?

[Anonymous]

It can renew their spirits and sometimes they do sneaky things when they think you might pay. But I think your fine to talk with them. I just have this feeling, but think they will give you what you want. They sound less greedy. They must prove worthy by putting all spoken in writing for deletes and removals with in 10 days.

Message Edited by ilovepizza on 02-11-2008 10:09 PM