Zombie Debt

[AF0929]

I have a question I have old zombie debt from a credit card I had 6 years ago. The SOL has passed I live in California. I checked my credit and the account is will stay on my credit for another 1 year. Should I ask for a pay for delete from the company in order to have it removed from my account sooner. This account is not in collections this is with the original bank. If not should I just leave it alone for the next year.

[gdale6]

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@AF0929 wrote:

I have a question I have old zombie debt from a credit card I had 6 years ago. The SOL has passed I live in California. I checked my credit and the account is will stay on my credit for another 1 year. Should I ask for a pay for delete from the company in order to have it removed from my account sooner. This account is not in collections this is with the original bank. If not should I just leave it alone for the next year.

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for an OC account that old I would not touch it or settle it till it is excluded as it will drop your score if it updates to paid status if it hasnt been updating every month. Once its off your reports you can settle it at any time without having to worry about how it will affect your CRs and at that time I would offer 20-30% of the amount due.

[Shogun]

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@AF0929 wrote:

I have a question I have old zombie debt from a credit card I had 6 years ago. The SOL has passed I live in California. I checked my credit and the account is will stay on my credit for another 1 year. Should I ask for a pay for delete from the company in order to have it removed from my account sooner. This account is not in collections this is with the original bank. If not should I just leave it alone for the next year.

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Technically it's not a Zombie debt yet.  A Zombie debt is one that's past the SOL and past the CRTP for exclusion from your CR.  You could try a PFD, but you do run the risk of them updating the information and it would appear as a new debt and thereby ding your score even more.  As it gets closer to having the plug pulled, I'd settle the debt just to get rid of it.  Maybe make an offer and see if they counter.

[RobertEG]

You always run the risk that, at ay time, the OC could refer to a debt collector or sell the debt, thus resulting in the addition of a collection.

Sale of the debt would instanty remove any PFD to the OC, and shift it to deletion of only any reported collection.

While any collection would become excluded no later than 7 years plus 180 days from DOFD, it could further ding your score for another year or so.

Are you planning to app for new credit within the next year?

If so, offering a PFD could both get rid of whatever derogs are reporting by the OC, and avoid addition of a short-term collection.

If you dont need your score within the next year, then not pursuing a PFD or having a short term collection added may be something you can live with.

However, payment of the debt even after CR exclusion would stilll be beneficial, removing continued issues of having the unpaid debt.