Rebuilding Your Credit

[Smc007]

Got a letter from Portolio (first I've ever seen from them) with an offer to settle old credit card debt 5 years ago (4 years SOL in California). Offer is for $130 (orig $200). Special tax season offer... interesting.

Anyways, I want to pay it and want to get it deleted off reports.

Gameplan:

1.) Send Goodwill/pay for delete letter 

2.) Send a money order of $130 (can track if it gets cashed. Good idea)

3.) Wait...? 

Thoughts? 

[RobertEG]

There is always benefit to satisfaction of delinquent debt, so just paying has its benefits.  It wont improve your credit score, but might improve your chances for future credit, as unpaid delinquent debt can be a show-stopper regardless of FICO score.  You can then pursue a GW request after satisfaction, but most likely with a lower chance of voluntary deletion.

If earlier CR deletion, and thus score improvement, is a definate requirement, then counter wth a PFD offer.

However, that counter-offer is a non-acceptance of their offer.  They may take it off the table. 

If you dont plan to app for new credit in the next two years, you can wait for CR exclusion, and thus shield the unpaid debt from discovery by a simple pull of your CR, but that does not ensure that it wont be uncovered by other means.

Personal decision.