kimmykooz wrote:
NO...this is NOT less than correct. I never said the credit reporting time could be altered..legal or not!! What I said was Credit Reporting Law provides ONLY for the negative information to update as paid that is once it actually HAS been paid in full. If you have a negative collection on your credit report which has NO activity in 2 yrs., the minute you start making payments extends the 7 yr. life of that negative item. But by all means..I encourge everyone with outstanding accounts to pay them off ASAP. They will update as such on your credit report and you will see a slow rise in your credit score. Otherwise..I have researched this very issue only to discover that some individuals take matters into their own hands as do the collection agencies by negotiating what is refered to as a "pay for delete". The consumer agrees to pay the collection acct in full while the collection agency agrees, not to just update, but delete the entire item from the consumer's credit file. As appalling as this may seem..here's another one for you....there are some individuals who are desperately seeking any solution in order to obtain a descent credit score. What they do with THEIR own credit is their business & responsibility. Maybe you can do a little or a lot of your own research to discover the do's & don't's of credit reporting. Never have seen it mention 7-7.5 yrs CRTP. Although, I DID notice you have absolutely NO advice to offer the ones who are trying to seek resolution for the bad position they may be in. The information I posted can be obtained anywhere on the Internet whether it be right or wrong. After all..this IS a discussion forum.
If I'm reading right, if you have an account, like a collection or charge off, and it was been dormant for 2 years, are you saying that paying on it would extend the 7-year reporting time period on your CRs, thereby making it 9 years of reporting? Wouldn't that be illegal based on Sect. 605 of the Fair Credit Reporting Act?
http://www.ftc.gov/os/statutes/031224fcra.pdf
§ 605. Requirements relating to information contained in consumer reports
(a) Information excluded from consumer reports. Except as authorized under subsection (b)
of this section, no consumer reporting agency may make any consumer report containing
any of the following items of information:
...
(4) Accounts placed for collection or charged to profit and loss which antedate the report
by more than seven years.
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Per FICO scoring, it doesn't matter if you owe $0 or $10,000, the impact of a collection is equal. In other words paying off a collection won't help your FICO score. As you said, though, over time you could see some score improvement due to the fact that it is getting older. That improvement isn't due to paying it though. A 6-year old paid collection is just as bad per FICO as a 6-year old unpaid collection. Now there are some FAKO scores that look at paid collections favorably.
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Negotiating a pay for delete (PFD) isn't a bad thing. The purpose of a PFD is to get the item deleted. Getting any collection deleted is a great thing. Getting any charge-off deleted is usually a good thing, depending on the age of the OC account and how it reports. In some cases, getting a charge-off delete can result in a FICO loss.
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As of your post, you had been on these forums for about 360 minutes, or roughly 6 hours over the course of one day (today). If you read further and spend more time studying MVV's posts, as well as everyone else's posts, you'll see a great deal of time and effort is spent at helping others and improving their credit situation. You'll see countless posters, present company included, who were able to gain high scores and get a home of their own. You'll see countless posters say that their finances improved. You'll see posters post how they got out of debt. You'll see countless posters get saved from the clutches of CAs and pending judgments. Many of the success on these forums can be partially contributed to MVV and posters just like him, with most of the credit going to those in the hunt and making it happen.
Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
