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mnchkds1
Posts: 3
Registered: ‎03-29-2014
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Paying Off Closed Accounts?

My life is a mess. I lost my job last August and last payments made on my accounts fluctuated between September and November until I ran out of funds. I recently began working again and desperately want to get my accounts caught up, then begin paying a card off at a time. 

 

I found out one card was charged off. I made an agreement with several creditors to pay a set payment for the next 8-12 months but with the understanding the account would be closed. I figured my credit is so messed up from a past bankruptcy we had to file and now this mess. I now just found out another creditor closed another account.

 

So the account that got charged off, he told me it is with a collection agency, who to my knowledge has not attempted to contact me yet because I havent gotten anything about it from them to date. He told me even though the account was charged off, it would still be beneficial to pay the account, better for my credit, etc. However I have had someone else tell me (a friend) that he gave me false info. She told me not to worry about the closed accounts, concentrate on the ones I have left open. Take care of them. She told me that anytime I make a payment, it redates the debt on my credit report, which means a longer period before it falls off my report. 

 

So my question is, who is right? If the accounts are closed, should i pass them by while I take care of the accounts still open?  I only have one card I REALLY worry about because of the balance and creditor ($4000 - Capital One) and that account is open. Would rather deal with that card right now, paying it down, along with the other ones open. 


FWIW, the closed accounts are all less than $1000 each (one or two I believe are less than or close to $500)

 

HELP!

 

 

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WillTeasle
Posts: 334
Registered: ‎03-23-2014
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Re: Paying Off Closed Accounts?


mnchkds1 wrote:

My life is a mess. I lost my job last August and last payments made on my accounts fluctuated between September and November until I ran out of funds. I recently began working again and desperately want to get my accounts caught up, then begin paying a card off at a time. 

 

I found out one card was charged off. I made an agreement with several creditors to pay a set payment for the next 8-12 months but with the understanding the account would be closed. I figured my credit is so messed up from a past bankruptcy we had to file and now this mess. I now just found out another creditor closed another account.

 

So the account that got charged off, he told me it is with a collection agency, who to my knowledge has not attempted to contact me yet because I havent gotten anything about it from them to date. He told me even though the account was charged off, it would still be beneficial to pay the account, better for my credit, etc. However I have had someone else tell me (a friend) that he gave me false info. She told me not to worry about the closed accounts, concentrate on the ones I have left open. Take care of them. She told me that anytime I make a payment, it redates the debt on my credit report, which means a longer period before it falls off my report. 

 

So my question is, who is right? If the accounts are closed, should i pass them by while I take care of the accounts still open?  I only have one card I REALLY worry about because of the balance and creditor ($4000 - Capital One) and that account is open. Would rather deal with that card right now, paying it down, along with the other ones open. 


FWIW, the closed accounts are all less than $1000 each (one or two I believe are less than or close to $500)

 

HELP!

 

 


I'm not an expert on this, so hopefully more people will chime in.

 

The last thing you want is another account to go to collections and add another black mark to your report.  Do what you can to make sure that doesn't happen.

 

After that, you can start tackling the closed/charged off accounts.  Once paid off, you might be able to get some/all of that removed from your report with GW letters to the lenders.

 

GL!


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WillTeasle
Posts: 334
Registered: ‎03-23-2014
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Re: Paying Off Closed Accounts?

[ Edited ]

Also, and I could be wrong on this, I don't believe payments to collections redate the debt on your report.  I believe the baddies fall off 7 years after the first deliquency date.  What paying the collections agents *may* do is extend the statute of limitations for them suing you to collect.

 

Again, if I'm wrong someone please let me know and I'll edit/remove incorrect information from this thread.

 

Edited as I may have been incorrect.  Need to research more it seems.


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peaceonearth
Posts: 312
Registered: ‎04-05-2013
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Re: Paying Off Closed Accounts?

When did you make the last payment or the accounts went delinquent?

If the accounts went delinquent and made the last payment 2 years ago, you have 5 more years for the accounts to go off the reports if they don't sue you of course; and did not get a judgement against you.

If you make a payment today, the baddies will show on the reports for 7 more years.

You reset the clock every time you make a payment we're talking about the 7 YEARS credit reports. I don't think making a payment resets the SOL.

Making arrangements with the CA may also rest the 7 years reporting.

 

To all the pros over here, Please correct me on the above.

 

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Creditaddict
Posts: 22,116
Registered: ‎10-23-2007
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Re: Paying Off Closed Accounts?

1. Once it is charged off unless you have the money laying around I would never pay it in full... once you have some money (say $500 if you owe $1000) call the collection agency and offer them to settle it for the $500 (most likely they will take it and then it will be $0 on your credit report)

people say not to pay it because for scoring paying a charge off does not help but when it comes to getting future credit, paying a charge off or settling a baddie will help show that you went through a bad time but you got back on your feet and took care of your obligations.

 

2. But I would focus on what you do have open and what plans you set up with your other creditors that have closed accounts but are still current or will be current once you start making the payments in the plans they made with you (reduced fixed payments and reduced interest for like 6-12 months at least right?)

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DawgZ
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Re: Paying Off Closed Accounts?

They are both right sort of...Right now you control what happens. You have to decide whats more important, your credit or having cash. You need to know what is on you FICO reports (all 3). If the closed accounts are not reported on your reports then pay the closed accounts before they become a bad mark and pay the minimum on the open account right now. This can save you a lot of headache because if they get reported you have no control over getting them off the reports other than wait 7 years for them to drop. Read as much as you can in this board it has great info. I was in your place 3 years ago.

 

 

 



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peaceonearth
Posts: 312
Registered: ‎04-05-2013
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Re: Paying Off Closed Accounts?


DawgZ wrote:

They are both right sort of...Right now you control what happens. You have to decide whats more important, your credit or having cash. You need to know what is on you FICO reports (all 3). If the closed accounts are not reported on your reports then pay the closed accounts before they become a bad mark and pay the minimum on the open account right now. This can save you a lot of headache because if they get reported you have no control over getting them off the reports other than wait 7 years for them to drop. Read as much as you can in this board it has great info. I was in your place 3 years ago.

 

 

 


Do you think the creditor will close the account and not report it to the Credit Bureaus?

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Creditaddict
Posts: 22,116
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Re: Paying Off Closed Accounts?


peaceonearth wrote:

DawgZ wrote:

They are both right sort of...Right now you control what happens. You have to decide whats more important, your credit or having cash. You need to know what is on you FICO reports (all 3). If the closed accounts are not reported on your reports then pay the closed accounts before they become a bad mark and pay the minimum on the open account right now. This can save you a lot of headache because if they get reported you have no control over getting them off the reports other than wait 7 years for them to drop. Read as much as you can in this board it has great info. I was in your place 3 years ago.

 

 

 


Do you think the creditor will close the account and not report it to the Credit Bureaus?


I think they might have been thinking the closed accounts were being sold to a collection agency and pay them to avoid that... I'm not sure what op meant otherwise because most likely the creditor has already reported the accounts closed, it's just a matter if they are current or not.

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mnchkds1
Posts: 3
Registered: ‎03-29-2014
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Re: Paying Off Closed Accounts?

OP here. I plan on living in this forum so I can absorb all the info I can. I want to be out of debt so bad. Have made many mistakes in the past. Thanks for the suggestion to check out the boards

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mnchkds1
Posts: 3
Registered: ‎03-29-2014
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Re: Paying Off Closed Accounts?

This is what has happened. 

 

Card one offered a reduced payment $16 a month for x months (cant remember offhand if it was a full year, or 8-9 months) no more late fees, reduced interest BUT the account needed to be closed.  After the x months it goes back to normal/regular payments.

 

Card 2 requested the same, make lesser amount payments, closed account

 

Card 3 made a payment arrangement with, online. I set the account up to take 3 equal payments of $116 a month for 3 months, my payments would go back to normal monthly payments, account stays open. The amount I agreed upon was a bit more than I felt comfortable with but figured I was wiling to do it to preserve the account. Imagine my surprise when I got online to check my credit to find out the account had been Closed the beginning of march, yet my online info failed to notify me of this. I called the creditor, mentioned this to them, and she said, yes the account was closed, do not know why it didnt state that online. When I told her the payments I arranged was based on my believing the account woud remain open and I agreed to an amount higher than I could really afford, she cancelled the 2 remaining amounts, yet told me if I paid $116 beginning of April, the account would be pretty much on track. Okay, what sense is it to worry about it now with a high payment if the account is closed anyway? I would rather put the money towards an OPEN account to keep those from being closed, like someone said above.

 

The credit report is showing closed accounts already  :smileysad:


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