topic Re: Whether you pay it in full or you pay it partially, your... in General Credit Topics

I have an item that went into collections in the amount o...

josie — Thu, 05 Apr 2007 18:10:28 GMT

I have an item that went into collections in the amount of 1681 they are offering me a settlement in the amount of 840. My question is it going to hurt me if my credit report shows that i accepted this settlement. I am in the process of fixing my credit report this item has been on my credit report from aug 2006. It is the last collection account that I have to pay off. Or should I just come up with the money and pay the whole amount off which would not be until Aug. 2007

Settlement agreement should require creditor to report account as unverifiable

Anonymous — Fri, 06 Apr 2007 05:24:25 GMT

The research I have been doing indicates that you should ensure that the settlement agreement includes that the creditor will report the item as unverifiable. Be sure that is in writing in the settlement agreement. This might require you to dispute the item with the credit bureaus to get it off your report, but hopefully the creditor will do this on their own.

According to the collections office they will report it a...

josie — Fri, 06 Apr 2007 13:02:59 GMT

According to the collections office they will report it as settled would this hurt me when i apply for a loan looking to get a car loan at the end of the year or early next year.

I called eq and they said it would be better for me to pa...

josie — Fri, 06 Apr 2007 15:33:53 GMT

I called eq and they said it would be better for me to pay the collection in full because it would then show paid in full in stead of settled which creditors will most likely to think twice about issuing me credit.

Negative information

Anonymous — Fri, 06 Apr 2007 15:38:42 GMT

Josie,

Any negative information (especially) recent negative information will hurt your credit score. I would take the settlement for less obviously but the fact is if it's a collection it will impact your score. As far as paying it back, make sure you GET IT IN WRITING -insist that they agree to delete the item when it is paid in full. Your part will be to make sure you can make the payments- nothing looks worse than agreeing to pay and then defaulting again.

If you decide not to pay at all, only time will lessen the negative effects.

They say all they will do is report as paid in full that...

josie — Fri, 06 Apr 2007 17:01:01 GMT

They say all they will do is report as paid in full that is if i pay the whole amount if i pay the settlement they will report it as settled.

Another question this is from a rental property that is from 2002 but went on my credit report in aug 2006 if i just let it go even if i contacted the collection company when will this come off my credit report if i leave it alone starting from now will it be as of 2002 when i left the state or will it be as of aug 2006.

Need all the help i can with this really need to know what is best.

If i should pay this this off in full should i use my credit card which would then use 45% utalization and would be able to pay 500 a month to pay it down or should i just wait until aug to pay it off

Message Edited by josie on 04-06-2007 09:19 AM

Message Edited by josie on 04-06-2007 10:01 AM

get a written statement!!

Anonymous — Fri, 06 Apr 2007 22:13:35 GMT

make sure you receive in writing a statement from them saying that they will REMOVE the item from all 3 bureaus once you pay it.

The company said if i pay the balance in full they can no...

josie — Sat, 07 Apr 2007 00:05:54 GMT

The company said if i pay the balance in full they can not have it remove my my credit report. All thry can do is report it as paid in full.

I think different collectors have different rules. When I...

yoreljm — Sat, 07 Apr 2007 02:13:28 GMT

@josie wrote:
The company said if i pay the balance in full they can not have it remove my my credit report. All thry can do is report it as paid in full.

I think different collectors have different rules. When I settled my chargeoff for less than half, the said they would report it as "paid in full". Note that the collectors do not have your best interest at heart. They ARE going to try to get the full ammount! My charge off when to many different collectors until i found one to work with me.

That i have figured out they really didn't want to work w...

josie — Sat, 07 Apr 2007 02:21:20 GMT

That i have figured out they really didn't want to work with me with any thing i asked them it was like everything they can not do. I think i am just going to accept their settlement and see what happens even if they report it as settled. It would be 840 i can keep it the bank to add to my acct for the down paymet for the car i would like to purchase early next year or later this year.

good luck! given time, the chargeoff will not matter anym...

yoreljm — Tue, 10 Apr 2007 04:47:13 GMT

good luck! given time, the chargeoff will not matter anymore.

Off in 2009

josie — Tue, 10 Apr 2007 12:23:35 GMT

After disputing an item on my credit report i realize that this item will drop off in 08/2009. I have decided not to pay it because my understanding is if i pay it the seven year period will start over. If it hinders me from getting the car loan early next year then i will think about paying it otherwise i am leaving it where it is. It has already cause damage to my credit report and the company doesn't want to work with me so it will be their loss. Was willing to pay.

Whether you pay it in full or you pay it partially, your...

Anonymous — Wed, 11 Apr 2007 07:44:51 GMT

Whether you pay it in full or you pay it partially, your credit will be no better off. If you pay it in full, then you'll have a paid collection. A paid collection is only slightly better than an unpaid collection. Maybe 10-20 points, if that. Once a collection, it's a collection until 7 years from Date of First Delinquency. I know from experience having paid an account in collections. Paid it in full, and didn't negotiate a thing. Dummy me.

Whatever payment arrangement you get them to agree to, insist that the tradeline be deleted--both from the creditor and the CA. Otherwise, there's really no point in paying it. Your credit won't benefit from a paid collection, and in some states paying it will reset the clock for reporting to the credit bureaus.

Don't do ANYTHING over the phone. In fact, never call a CA. Nothing good comes of it. Do everything in writing.

Re: Whether you pay it in full or you pay it partially, your...

josie — Wed, 11 Apr 2007 20:29:51 GMT

I have other collection accounts that i have paid off in full since last year can i still call the collection companies to delete these off my credit report , or the credit report agencies or is it to late.

Re: Whether you pay it in full or you pay it partially, your...

Anonymous — Thu, 12 Apr 2007 00:47:23 GMT

If it truly was paid in full, then unfortunately you don't have a lot of leverage. The best thing I can suggest is goodwilling the original creditor. Odds aren't good, but it will only cost you 39 cents to try.

If the account was settled for less than the full amount, then you have a bit of leverage you can exert. Say for example the debt was for $1,300 and they settled it for $850. You write 'em a letter offering to pay the difference, their written off loss of $450. In exchange they agree to delete all reporting to all credit bureaus on this account. Do it in writing, don't open your checkbook or send one penny until you have something in writing--you agreeing to send payment within 15 days of receiving the signed agreement from them, them agreeing to delete from all bureaus on this account within 15 days of receiving payment.

All depends upon the creditor. Some will. Some won't.

If it's AMEX, they are incredible tough. Unless you still owe them money, they likely will not budge at all on the deletion of reporting--whether you owe them money or not. I have a paid collection with them, PIF, and it's scheduled to drop off my reports in February 2008. Goodwilled 'em twice. Got a response both times. No. Tradeline stays for as long as the law permits.

Also AMEX blacklists anyone who owes them money. You won't EVER get another card with AMEX if you owe them money. Even if the debt is beyond SOL for suing, and beyond being reportable on a credit report, you have to pay up in order to get a card with them again. Didn't used to be, but that's been their policy and behavior in recent years. These days they are the elephant that NEVER forgets.

FICO doesn't say so, at least not that I've found, but an AMEX account in good standing seems to punch well above it's weight when compared to a VISA or MC. It seems to be worth it, from a credit score perspective, if you settle up with them.

AMEX does have a program, or they used to, call Oasis. My understanding of it, if you owe them money, they give you an Optima Card (credit card, not a charge card like Green, Gold and Platinum cards) with that debt on it. You can PIF at once, or over time with interest. It's a new tradeline with AMEX, and if you keep it current, you will be considered for credit increases and card upgrades. Several folks on creditinfocenter have paid up with AMEX and gotten back in their good graces.

Re: Whether you pay it in full or you pay it partially, your...

Anonymous — Thu, 12 Apr 2007 23:09:15 GMT

If you have an account that will drop off within the year, just some helpful advice...despute it with the CRA's as being over the acceptable reporting time. They may go ahead and drop it. I did one that way just recently and it was dropped 9 months before the scheduled date, the next day after my online dispute, as a matter of fact.

Re: Whether you pay it in full or you pay it partially, your...

josie — Mon, 23 Apr 2007 00:35:17 GMT

I just realize that the SOL of a signed contract is 6 years GA (this was for the rent of my apartment) can the collection company still enter a judgement on me the first DOL is in September of 2002.

Still debating on what to do. Need to decide by Friday.

Re: Whether you pay it in full or you pay it partially, your...

Tuscani — Mon, 23 Apr 2007 12:02:13 GMT

Nope.

Re: Whether you pay it in full or you pay it partially, your...

josie — Mon, 23 Apr 2007 12:06:36 GMT

So your telling me my best bet is to leave it alone

Re: Whether you pay it in full or you pay it partially, your...

Tuscani — Mon, 23 Apr 2007 12:14:54 GMT

As already suggested, I would no give them a dime unless they agree to delete. And paying can reage the account (eventhough this is illegal).

You said they placed in on your report in 2006. Is that the earliest day shown, or is 2002 referenced anywhere?