Pay off creditor, even when it is scheduled to roll off in August 2014?

[SweetMelissaH]

I have a Midland debt that is $401.00 from 2006.  I received a settlement offer in 2011 $208.00. For whatever reason, stupidity, I have ignored debts including watching my credit score plummet.  So I am now trying full throttle to pay off debt. I'm trying to become a first time homebuyer next year.

So I was going to call up and pay off Midland and received an updated credit report from Experian with info listing that in August, this creditor will roll off.  Do I pay it and open up the "wound" on my credit report or let old dogs lie and let it be?

I also have a timeshare, I know, with the same situation.  This too, is from 2006.  It is with Orange Lake in the amount of $8100.  It is scheduled to roll off in November/December this year.  It is a foreclosure.  Does a foreclosure fall off just as easily as it sounds? I have done some very stupid things in the past and want to repair the damage I once caused.

[gdale6]

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@SweetMelissaH wrote:

I have a Midland debt that is $401.00 from 2006.  I received a settlement offer in 2011 $208.00. For whatever reason, stupidity, I have ignored debts including watching my credit score plummet.  So I am now trying full throttle to pay off debt. I'm trying to become a first time homebuyer next year.

So I was going to call up and pay off Midland and received an updated credit report from Experian with info listing that in August, this creditor will roll off.  Do I pay it and open up the "wound" on my credit report or let old dogs lie and let it be?

I also have a timeshare, I know, with the same situation.  This too, is from 2006.  It is with Orange Lake in the amount of $8100.  It is scheduled to roll off in November/December this year.  It is a foreclosure.  Does a foreclosure fall off just as easily as it sounds? I have done some very stupid things in the past and want to repair the damage I once caused.

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Anything scheduled to drop this year I would just wait until it leaves your report and then settle it if you wish. If these are not updating monthly already when they update to paid status they will appear to FICO as new ones and drop your score. FC remains on report for 7.5 years from its DOFD snd then becomes excluded.

[RobertEG]

Being excluded from your credit report means only that others will not be able to become aware of the unpaid debt by pulling your credit report and seeing, for example, a reported collection with no reporting of paid under the collection.

If you let the old debt dog lie, it remains as unpaid, delinquent debt.  You can choose to rely only on credit report exclusion to shield knowledge of that fact, but applications for higher amounts of credit usually involve a more detailed review other than a simple pull of your credit report.

It is common, for example, to simply ask for disclosure of any unpaid, delinquent debt.

Additionally, a debt collector can, if they choose, continue to pull your CR.

Finally, OC accounts themselves do not become excluded from your CR, only derogs reported under the account.

Exclusion of prior reporting of a CO or collection can still leave the OC account of record, with no reporting of satisfaction of the debt.

Satsifaction of old, delinquent debt, other than $ out of pocket, always has potential advantage.

[SweetMelissaH]

Thank you, both of you for responding.  If I understand correctly, I should pay these off no matter what, but wait until they roll off?  I should not contact them to pay these until the roll off period?  We are wanting to purchase a home by Spring of 2015.  I am trying to rebuild credit as quickly as possible.  My current score is under 600.

[Shogun]

It's up to you, they are close to passing the CRTP.  I certainly wouldn't pay full price.  I would try to settle for around 10% or so.