Question about paying off old cards

[Anonymous]

Well, we will try this again.  I am new at this so I was wondering if you could answer a few questions.  Back in September my scores were: TU 579, Experian 566 and Equifax 519

                                  now: TU 583, Experian 602 and Equifax 531

My question is, as I am paying off my back debt if one is getting ready to drop off, should I pay it anyway or just let it drop off?  Or does it realy go away if it's not paid?  Any tips you can give me would be welcomed!

Amy

note: this post was split off from "I am in SHOCK 178+ increase from Experian." I edited it to change the title and to add this note, but nothing else was changed.

Message Edited by haulingthescoreup on 01-06-2009 05:58 PM

[Anonymous]

I just want to be clear...I don't have any credit card debt.  I only have old bills eg...medical, cable...... so the subject should be paying off back bills.....I couldn't figure out how to change the subject hedding.  Any tips?

Thanks

Amy

[llecs]

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rdgwy69 wrote:

I just want to be clear...I don't have any credit card debt.  I only have old bills eg...medical, cable...... so the subject should be paying off back bills.....I couldn't figure out how to change the subject hedding.  Any tips?

Thanks

Amy

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To the right of the header, click "Options" and then click "Edit Message". You are then able to edit the message header and then post.

[Chopbrocoli]

Although the negative item will fall off the reports, the debt is still legally yours and a judgement can be obtained as if its within SOL.

[llecs]

I take it this is bad debt from CAs or COs from an OC that is about to fall off due to CRTP. Congrats.

Paying off a CA or a CO (assuming it isn't a CC) will not improve your FICO score at all. In fact, paying any collections without a PFD can drop your score, and a paid CA is just as bad as an unpaid CA in FICO's eyes. If you are close to that 7 yr period, then I'd let it be. Now that does excuse any legal liability for it. You could very well be inside SOL and can be sued for it long after it drops from your reports. And CAs can continue to try to collect forever, or until paid, even if SOL or CRTP has expired.

I've been in the same situation, though, and opted to let CRTP pass. After it drops, you could always offer a payment via a settlement to get them to stop collections for good. If you do pay for the debt, only offer 1 payment only. Do NOT offer payments in installments. And never call them. Keep everything via mail.

[Anonymous]

Thanks for the reply.  What are CO and CA's?  This is mumbo jumbo talk to the newby!  Anyway I have never had any loans other than studend loans(still in school) so my other questions is will paying my other bills eg power, phone, cell phont etc raise my credit score?  How do I get this type of on time payment reported? 

Amy

[Junejer]

Here are some abbreviations for you Amy. In most regions of the country, these types of utilities will not be reported to the CRAs, unless something goes wrong (don't pay) then you will see adverse action.

[Anonymous]

ok so what is the SOL for back bills or how do I find that info out.  also did your credit score go up any or down any when you paid off your bills?  Ok one more question...LOL....when they say a credit score of 620 eg RDA loan, is that the median score or do all of them have to be up to or above 620?

Thanks,

Amy

[llecs]

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rdgwy69 wrote:

ok so what is the SOL for back bills or how do I find that info out.  also did your credit score go up any or down any when you paid off your bills?  Ok one more question...LOL....when they say a credit score of 620 eg RDA loan, is that the median score or do all of them have to be up to or above 620?

Thanks,

Amy

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SOL:

http://www.bankrate.com/brm/news/cc/20040116b2.asp

A CC would be under Open Accounts.

Bills? You mean paying off the old CCs? Any increase? Yes and No. If that old CC is still factoring into your utilization (you can find out by doing some math and comparing it to any util figure listed on page 2 or 3 of your TU or EQ myFICO report), then paying it down without a PFD isn't a bad idea, so as long as the OC still owns the debt. This is especially helpful if this account is really old (older than your AAoA).

However, if the CC isn't being factored into util, then paying it could drop your score. If not factored in, then offer a PFD to the OC if they still own the debt. If they don't own the debt, it should be listed as a $0 balance in your CR.

Per the RDA loan, you may want to check over in the Mortgage board for that one. I do know it is a USDA loan, and likely they will consider the lower of your two middle scores, if apping jointly. But I am unsure of the minimum requirements.

[Junejer]

SOL varies from state to state and by type.

They are talking about the middle score.

Message Edited by ByrdMan on 01-08-2009 12:00 PM