I NEED HELP

[Anonymous]

I have an old utility bill that is currently showing as charged-off on my credit report. It is scheduled to fall off in March 2012, the bill is only $119 which I could now easily pay, but my question is which action could help my credit score- pay it now or just let it fall off?

[m29]

 You could call the OC and offer a PFD if you truly feel you owe this bill! Otherwise I would wait for it to fall off in March! Just my opinion!

[Anonymous]

I'm new to all this so sorry if my questions seem dumb, but I forgot to mention that is is currently reporting every month as past due. So even though it might stay on my credit report for let's say another 7 years it should report as paid if I was to pay it now right? And it shouldn't hurt my score if it stays on there as paid I'm guessing, right? Or wrong? I don't mind opinions bc I have no idea Lol

[MarcinXP]

Actually I believe if you pay it right now your score would drop as the agency will update Paid in Full with today's date which will drop your score because it would recognize that there is a recent collection activity. If it is yours and you want to make good on it then do a PFD, but if it's due to fall off in March 2012 which is 5 months from now roughly then save yourself the $119 and if your heart won't let you then donate it to charity. In anycase your increase won't be that noticeable since collection is at or around 7 years anyway so you might see a slight bump of 1 or 2 points even if it falls off or you pay and they delete it.

[guydiver]

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@Anonymous wrote:

I have an old utility bill that is currently showing as charged-off on my credit report. It is scheduled to fall off in March 2012, the bill is only $119 which I could now easily pay, but my question is which action could help my credit score- pay it now or just let it fall off?

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Best case scenario, get a PFD now, and it goes away.  Depending upon your credit profile, it could be a substantial score increase, especially if that is your only negative.  A charge-off is a major derogatory, and will put a good dent in your Fico even if it is aged.  Worst case scenario is you pay and they update as paid, but leave the CO on your reports.....no change in scoring.   I would try for the PFD "in writing" and see what they say.  Otherwise it'll probably fall off a month earlier than indicated, around the first of the month Feb. 2012 according to my experience with baddies falling off of all three reports.  YMMV.  Good luck.

[Anonymous]

Ok so the CO in question is also my oldest account on my report, when it falls off or if I PFD will this effect my AAoA and my score possibly drop?

[ntg187]

"Paying it now will update the reporting to paid and will reset the time it will take to fall off"

Where did you hear that from?  Im almost positive that paying off an old account does not change the DoFD and therefor would not alter the time it is allowed to be reported.  In fact I have paid a few bills that were about to fall off (that did) because the agency refused a PFD and I wasnt interested in getting sued over the balance.  If you have any facts to back up that statement I would appreciate you directing me to them as this has not been the case in my experience.  Cheers.

[MarineVietVet]

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@m29 wrote:

Paying it now will update the reporting to paid and will reset the time it will take to fall off! You could call the OC and offer a PFD if you truly feel you owe this bill! Otherwise I would wait for it to fall off in March! Just my opinion!

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This is not correct. No action by anyone can change the CRTP (Credit Reporting Time Period).

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Booner72]

PFD or wait it out.