Recommendations please: Pay off a CA derogatory now or wait 1 year for 7 year deletion?

[Anonymous]

So I checkd my Fico this month for the first time in a long time.  Without my knowing, a CA has been keeping an old (disputed with cell comp but couldn't win so legitimate debt on paper) cell phone bill debt "active" each month since 2009 by saying I haven't paid my monthly bill. So each month I'm assessed a " recent missed payment" penalty on my credit report/score. Of course by now  there are almost 3 years worth of missed payments on the report. Right up to Dec. 2011 it says I haven't paid and it's really hurting my score.

The CA hasn't contacted me nor isn't even now.

Here's the tought question. According to both reports, this item is due for deletion in January 2013. One year from now. I don't want to pay this $800 debt. Even if I do, the years of missed payments will still show on my report. I have the means to pay it but don't have the need for a near term score bump by paying it off whole. If I pay it off fully, it will still be deleted in 1 year and no evidence, good or bad, of this account will exist from then on.

So I will be out $800 now for a little score bump but I can get that bump by not paying and waiting a year. I'm not in dire need of a sky high score this year.

My question: Why pay it off when it will be deleted for free relatively soon? Seems like a waste of $800.

Ugly history with pretty payment at end or ugly history with no payment - it will all not matter in 1 year so I don't see  a reason to lose $800 for looking good 1 year early.

They're not harassing me about it so I'm just going to ignore it unless someone has a good reason not to wait for deletion.

Thanks.

[pizzadude]

If you choose to ride it out make sure that they do not re~age the debt by changing the DOFD.

[pizzadude]

I forgot to add ~ one reason why you might consider paying is if the debt was still within SOL for your state, and you thought there was some possibility of them suing you.

I'm assuming that it is out of SOL, since it is nearly 7 years old, right ?

Also even when it drops from your reports, CAs can still attempt to collect on it. 

[GCSCORE]

I would ride it out.  Do not contact them.  Paying it off will not give you any kind of bump unless you can convince the CA for a PFD.  But then that means you have to contact the CA which could reage the account.  So just leave it be.

[MarineVietVet]

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@GCSCORE wrote:

I would ride it out.  Do not contact them.  Paying it off will not give you any kind of bump unless you can convince the CA for a PFD.  But then that means you have to contact the CA which could reage the account.  So just leave it be.

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Just contacting the CA would have no effect on scoring. Collections are scored off the date of assignment not date of last activity.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

Going back to facts of the case....

I dont understand how the debt collector is, or could be, reporting any new monthly account delinquencies to the CRAs.

First, you dont have an "account" with a debt collector, and dont receive billing statements from them upon which you have a due date.  You dont have missed payments with, or reported by, a debt collector.

Second, debt collector reporting codes do not even, for that same reason, provide for reporting of monthly delinquencies.

They may be reporting their collection monthly, and your CR may be showing all prior delinquencies reported by the OC, but I dont see how the debt collector is adding any delinquencies.  It is an "update" only in the sense of repetition, not addition.  The current status reported by the OC at its highest level prior to their collection referral may be contuinuing to show each month,but that is just a current status with them that has not changed.  I thus question the conclusion that they are adding missed payments.

Paying wont result in deletion of any of the reported derogs.  In fact, it is contrary to the reporting guidelines of the CRAs for a furnisher to delete prior reporting on the basis of payment of the debt.

[Anonymous]

It really is showing up as if the CA is the creditor and I owe them monthly. It says 120+ days past due. Last missed payment December 2011. In the calendar-like portion of the report it has many missed payments labeled in each month's square of the past 3 years or so.

I know paying it off won't help score jump much this year. It would only help me indirectly by getting out of the way and allowing the positive things be more meaningful in the calculcations. But that would only be for a year. Then all evidence will be deleted anyway so no point I see in paying it off. I'll spend the money on upcoming root canals. Ouch.