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

yoreljm
New Contributor

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

good luck! given time, the chargeoff will not matter anymore.
Message 11 of 57
josie
Regular Contributor

Off in 2009

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.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


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Message 12 of 57
Noah_Bodie
Senior Contributor

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

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.
 
Message 13 of 57
josie
Regular Contributor

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

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.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 14 of 57
Noah_Bodie
Senior Contributor

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

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.

Message 15 of 57
HouseHunter
Frequent Contributor

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

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.
Message 16 of 57
josie
Regular Contributor

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

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.
 
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 17 of 57
Tuscani
Moderator Emeritus

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

Nope.
Message 18 of 57
josie
Regular Contributor

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

So your telling me my best bet is to leave it alone
 
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 19 of 57
Tuscani
Moderator Emeritus

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

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?
 
 
Message 20 of 57
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