understanding paid off collection

[Anonymous]

Can someone please confirmation my confusing.

I've been reading a lot of threads in here lately and Im just trying to understand like the rest of the newbies in here does.

So paying off debt, collection or charge off doesnt increase your score right away correct? However paying off charge off it will be better in the long run? if so how?

Before I found this forum I had called all my collection and talked to them to schedule and willing to paid all my collection. (that was stupid)  I should have ask for PFD first correct?  Now I am struggle with sending them a letter trying to have them removed from my files, but they did mark as paid for less then full amount in my report.

If I understand this correctly, paying off debt does not increase your score right away but it will in the long run?

Have your file delete from your account will increase your score a lot?

[myjourney]

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@Anonymous wrote:

Can someone please confirmation my confusing.

I've been reading a lot of threads in here lately and Im just trying to understand like the rest of the newbies in here does.

So paying off debt, collection or charge off doesnt increase your score right away correct? Correct what usually happens is it actually causes scores to decline because when they report it as paid in Fico eyes it now looks like a new CO/CA

However paying off charge off it will be better in the long run? if so how? The only upside to a paid CO/CA is if you have to recon (UW) then under manual review it would be seen as paid.....but the best course of action is always a PFD

Before I found this forum I had called all my collection and talked to them to schedule and willing to paid all my collection. (that was stupid) Not stupid you just didn't know but I applaud you for paying your debit when you could have just said the heck with it....Bravo 

I should have ask for PFD first correct?  Now I am struggle with sending them a letter trying to have them removed from my files, but they did mark as paid for less then full amount in my report.

If I understand this correctly, paying off debt does not increase your score right away but it will in the long run?

Have your file delete from your account will increase your score a lot? Depends if this is an old debt then it has aged to the point it doesn't sting as much 

If it's a new debt then yes getting rid of it can cause a good jump in scores but as always YMMV 

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[Anonymous]

Thank you for the reply..I have 1 question for you.

I have 1 repo collection in my file and its the ONLY account that is the oldest account. ITs a charge off and it report every month for collection. The las time I paid was last 07/01/2012

However I did got a settlement letter from the collection agency offer me 50% of the cost that i owed. What should I do? I dont want to effect my score.

[myjourney]

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@Anonymous wrote:

Thank you for the reply..I have 1 question for you.

I have 1 repo collection in my file and its the ONLY account that is the oldest account. ITs a charge off and it report every month for collection. The las time I paid was last 07/01/2012

However I did got a settlement letter from the collection agency offer me 50% of the cost that i owed. What should I do? I dont want to effect my score.

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If the 50% offer contains the fact they will delete the TL from your CR's and you can afford it .....By all means jump on it inspite of the fact its your oldest account 

Because if you just pay it to show as paid in full ....it will still show as a negative account and DOFD in the case is 7/1/2012 so it won't fall off of CR until 7/1/2019

[Anonymous]

So "IF"  the collection agency doesnt want to delete it, then I shouldnt pay and agreed with the settlement? just leave as is until it deleted by itself till 2019?

[Anonymous]

Just make sure it's a PFD.  Also you can try getting a lower % than 50%.  When I paid my settlement on my repo, I was about to pay 50% (no PFD I had not heard of that)... When I called back to the CA, I asked for Joe the guy that I agreed to pay 50% with....and the girl that answered actually said don't pay Joe 50% because I'll do it for 33%!!!   I was flabbergasted.  But sure enough she gave me the settlement in writing for 33% and basically robbed Joe of his 50% settlement and also robbed the company of 50% settlement amount.

So you can try that tactic of talking to diff reps at the same call center... They usually can go as low as 33% possibly but they high ball you to start at 100% then 80% then 50%.  Also it helps to let time pass bc they will be more desperate as time passes.  You can say something like well my other debts with CAs are offering me 33% so I would rather pay them bc it's a better deal etc..

[myjourney]

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@Anonymous wrote:

So "IF"  the collection agency doesnt want to delete it, then I shouldnt pay and agreed with the settlement? just leave as is until it deleted by itself till 2019?

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I'm assuming this is a large amount?

What's your SOL? 

If your out of SOL then....see below 

So this is just IMHO and mine alone 

I wouldn't pay it!!!!!!!!!!!!!!

If they really want to get paid then they'll agree to my terms and I won't be dictated by their terms.....not when if it remains on my credit until 2019 paid or not...

[Anonymous]

What is SOL?

[myjourney]

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@Anonymous wrote:

What is SOL?

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SOL =Statutes of limitation....

the right to sue you for the debt 

Edit helpful reading 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Guide-To-Common-Abbreviations/m-p/224988?jump=true

[Anonymous]

The statute of limitations on debt in Massachusetts limits the time you can be sued for a debt.

Oral Contract: 6 years

Written Contract: 6 years

Promissory Note: 6 years

Open-Ended Accounts: 6 years