10-12-2012 07:34 AM
I am currently rebuilding my credit and been doing pretty well. I have 2 old accounts that are on my account one with Citi Financail for 4k and another with GMAC for 2k. The citi financial account went to collections in 2008 but around 2 years ago I was setting up a pay offf for 1600, made a $50 payment to hold that ammount but then ended up backing up cause they just took my $50 and didn't put it toward the $1600. My question is will paying this debt off now make my credit any better and 2 since I made that $50 payment does that reset the 7 year counter so instead of coming off in like another 2 I would have to wait another 5-6 ? I mean in the long run I would love to pay off the debt and what brought this on was somone contacting me today about it. 2 years ago I didn't make as much so Im in a better position to settle on it. I just don't want to pay $1200-$1600 and then have it not really effect my credit at all. I'm trying to get a mortgage in the spring or summer of this coming year and my scores are currently around 620.........
Please let me know and if you've had a similar experience post.
10-12-2012 08:14 PM
That is the quickest way to improve your score! I recently paid off 12k worth of OLD debt and now my score is up 115 points. I did dispute a lot off my report as well, but paying off my old debt contribuited to about 80+ points!
10-12-2012 08:16 PM
I forgot to mention, i settled my accounts as well. The only accounts that I paid in full were accounts that accepted PFD.
10-12-2012 08:18 PM
There's plenty of time to get this done. I almost always suggest paying the debt, or at least settling it. It just keeps the more bottom feeder CAs from popping up in the future. As far as the CRTP or SOL clock being reset, it depends on your state, but I seriously doubt it. One of the things I always tell people is never acknowledge the debt was yours, even if you're paying it off. Don't say it's yours. Never agree to new payment plans, this can come back to bite you. Key to this is to look at your reports and see what the DOFDs of the accounts are. Look into that and post back. Good Luck!
10-13-2012 10:53 AM - edited 10-13-2012 10:56 AM
Looks like that account my last payment was made Jan 2009, meaning that this coming year it will be 5 years old. It its my understanding that the CRTP is is 5 years in NY from the DoFD. So I'm guessing that would mean if I payed this off in full. They rep called me today and said they would accept my offer of $1000. I just want to make sure this is a smart move since at this point if its not going to help my credit whats 2 more years.
10-13-2012 11:04 AM
Also I'm confused as to why THe account balance of just over 4k is on my credit report reported by citi , and the CA reports it as well and its for liek 4500 ? How can they both report the same debt ?
10-13-2012 03:08 PM
The issue of whether to pay old, delinquent debt is not simply a FICO scoring issue.
The presence of any unpaid, delinquent debt can be a real show-stopper in any future credtior decision making.
Eventual exclusion of the fact of the delinquent debt from your CR will prevent others from learning of its presence by simply pulling your CR, but they may have other means of becoming aware of its continued existence. It is always best to have no unpaid, delinquent debt.
Letting it stay unpaid is a personal risk decision.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.