topic Is this account hurting my score in Rebuilding Your Credit

Is this account hurting my score

onourwayfellas — Tue, 23 Feb 2021 22:01:11 GMT

A few years back I cosigned for an apartment for a family member. They in turn moved out without paying the last months rent. Should I pay this, settle or let it sit? I am trying to clean up baddies in hopes of some day qualifying for a mortgage so I am willing to pay as long as it doesnt put me in a worse position.

Re: Is this account hurting my score

simplegirl — Tue, 23 Feb 2021 22:04:56 GMT

Since from the looks of the photo it has not been updating paying it would drop your score. So if you are will to take the score drop to have a zero balance then go for it.

Re: Is this account hurting my score

thornback — Tue, 23 Feb 2021 22:25:29 GMT

^^Before deciding not to pay it due to a potential score drop post-final update, check the statute of limitations (SOL) in your state for collection on realty/rental debt (if it differs from credit/loan debt) to make sure this debt is outside of SOL and you can no longer be sued.

You should also look into the possibility of a Pay for Delete (PFD) with the agency reporting the debt. If you can have it deleted after payment then that would be the preferred outcome.

Re: Is this account hurting my score

Anonymous — Wed, 24 Feb 2021 00:07:20 GMT

@onourwayfellas wrote:
A few years back I cosigned for an apartment for a family member. They in turn moved out without paying the last months rent. Should I pay this, settle or let it sit? I am trying to clean up baddies in hopes of some day qualifying for a mortgage so I am willing to pay as long as it doesnt put me in a worse position.

People seem to be afraid of an immediate score drop after paying an account that hasn't updated in a while.

I say if it still has a ways to go beforr aging off your credit, you should handle it (pay in full or settle for less, of course, preferably PFD).

Even if they do not delete, it may not drop your scores (no way to tell), it may help your scores, and definitely in the long run it will help your scores and credit profile.

Just because there is a chance you may take a scoring hit now, it will get better, and it is way better than taking the scoring hit for the entire 7 years.

Re: Is this account hurting my score

Anonymous — Wed, 24 Feb 2021 07:42:45 GMT

You should consider the possibility that they no longer report. Because for some reason they have not reported the delinquency from your SS. You may want to get an assurance from them that if you make a negotiated settlement that they will either delete the tradeline or report it as $0, paid as agreed, without any delinquency. It could be considered an act of goodwill just like a PDF. Delete or report $0 balance paid as agreed without delinquency, imho.

Re: Is this account hurting my score

dragontears — Wed, 24 Feb 2021 12:41:00 GMT

Others have mentioned potential impacts on scoring so I won't. My comment is specifically about wanting to qualify for a mortgage. Things might have changed but years ago when I was trying for my first home I had a collection from a property management company (that I did not owe) and I couldn't find a lender that would approve me with it unpaid because it was a housing type of collection.