Advice needed...

[fltireguy]

I am trying to decide the best course of action, for the best result on my scores...

I have one remaining baddie on my CR's

It;s a Target redcard account,  with a DOFD of  7/2010. $1958 balance, with a $500 CL (so, the util is KILLING me at 389% - Im sure that has an effect on my scores)

Target still has the account in house, and it has not been sent for outside colletions, and probably would not be based on age.

The question is, am I better off not touching it at all, and letting it age off in a year,  OR should I take the settlement deal for $480 that they had offered me? If I do the settlement, Target says that it would show as a paid collection, and then, I would assume, the 389% util. would be gone (that has gotta be taking a few points away from me... any ideas on how many?  I am ALMOST afraid to pay it, because, IF I do, will it show as a derog. TL for the next 7 years, vs. doing nothing and having it fall off next year/??

Current scores are:  624 Eq / 642 TU/ 665 Ex  

I also have a BK that will be coming off  in 1/17. No other baddies, and a few good TL's as well as an excellent Tl on my auto loans..

Any ideas? 

[SouthJamaica]

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@fltireguy wrote:

I am trying to decide the best course of action, for the best result on my scores...

I have one remaining baddie on my CR's

It;s a Target redcard account,  with a DOFD of  7/2010. $1958 balance, with a $500 CL (so, the util is KILLING me at 389% - Im sure that has an effect on my scores)

Target still has the account in house, and it has not been sent for outside colletions, and probably would not be based on age.

The question is, am I better off not touching it at all, and letting it age off in a year,  OR should I take the settlement deal for $480 that they had offered me? If I do the settlement, Target says that it would show as a paid collection, and then, I would assume, the 389% util. would be gone (that has gotta be taking a few points away from me... any ideas on how many?  I am ALMOST afraid to pay it, because, IF I do, will it show as a derog. TL for the next 7 years, vs. doing nothing and having it fall off next year/??

Current scores are:  624 Eq / 642 TU/ 665 Ex  

I also have a BK that will be coming off  in 1/17. No other baddies, and a few good TL's as well as an excellent Tl on my auto loans..

Any ideas? 

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IMHO you should just pay the settlement.

[RobertEG]

Paying will NOT extend the credit report exclusion period.

Any monthly delinquencies must be excluded no later than 7 years from their dates of occurence, and any charge-off or collection must become excluded no later than 7 yers plus 180 days from the DOFD.  Payment or non-payment has no effect on exclusion, and payment does not reset the period.

Credit report exclusion removes the ability of others to become aware of an unpaid debt by simply pulling your credit report and seeing derogs with no indication of payment of the debt.  It does not discharge the debt.

Unpaid, delinquent debt could become known by other means, such as simply asking for a disclosure thereof.

It is best to have no unpaid, delinquent debt.

Whether or not to rely upon credit report exclusion to hide the fact is up to you.

[RonM21]

Personally, I'd pay it in full if possible, so that it can't show up and cause issues down the road, like when applyting for a mortgage. Even more, at that point you may even be able to get them to delete it overall. It won't change the date if is supposed to come off.

[SouthJamaica]

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@RM21 wrote:
Personally, I'd pay it in full if possible, so that it can't show up and cause issues down the road, like when applyting for a mortgage. Even more, at that point you may even be able to get them to delete it overall. It won't change the date if is supposed to come off.

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I agree. If possible.