Looking for assistance

[Anonymous]

Hello, I am new to this forum option and was curious if anyone could help me.

I was curious what I should do about a dept i have in collections and Im not sure how to go about making my score better. I have been told different things from different people and now im confused.

I have a debt of 3000+ on a credit card from back in 99. It has gone to collections and says date of last activity Sep. 2005. I talked to my bank and they told me I should have someone look into writting a letter to see if it can be released or something or to just wait it out to be droped. They told me the reason was that if I were to make payments on it or pay it off in full that it would bring my score down a bunch and wouldnt really be worth it. I was told by others that I should try to pay it off because it is a good institute and that it helps with longevity in my credit. These people told me that in the long run it would be far better to go ahead and try to pay it because longevity ways a good amount on a credit score.

Anyhow... I am really confused and was wondering if anyone had any advise as to what would be better.

Thanks in advance!

[mauve]

You should read the credit 101 sticky at the top of the forum.  What you need to know (or locate) is the Date of First Delinquency.  You should also go to annualcreditreport.com and pull your free yearly reports directly from all three credit bureaus.

[guiness56]

Hi and welcome to the forums.

Do you know when you actually defaulted on the CC?  When was the last time you were late and never brought the account current again?  (DoFD)

Accounts drop off your report based on the DoFD.  If you can get that we will be able to better advise you.  The 2005 date really has no meaning.

I think what the bank is referring to is a good will letter.  Good will letters are generally for paid debt.

The bank is right about paying an old bill.  It will update to look current and drop your score.  And, no, it would not help.  Paid and unpaid are scored the same.

If the DoFD is 05, this will fall off your report in 2012/13.

Who is reporting, the OC or a collection agency?

[Anonymous]

From what the bank was saying it was back in 99 was the last activity from me on that account. I only have the score alert option with my fico. Is there somewhere I can go to see this DoFD on these reports. I dont seem to see it. The report says a collection agency was hired to collect the debt and it looks as though it is reporting it.

[mauve]

go to annualcreditreport.com to get your Federally mandated 1 free (per CRA) credit report per year.  That is the most complete report you can get.  Also, 2 of the CRAs report the date until which the account should remain and the other reports the DoFD. 

[MarineVietVet]

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@mauve wrote:

go to annualcreditreport.com to get your Federally mandated 1 free (per CRA) credit report per year.  That is the most complete report you can get.  Also, 2 of the CRAs report the date until which the account should remain (Transunion and Experian) and the other reports the DoFD. (Equifax)

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[mauve]

Thanks!  I couldn't remember which was which!

[MarineVietVet]

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@mauve wrote:

Thanks!  I couldn't remember which was which!

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No problem. I was just afraid you might get upset if I added those to your post.