Paying off debt

[Anonymous]

I'm finally able to start paying off my debt. My questions is when I pay off my debt to original creditors instead collection agencies what kind of affect does that have on my report? The reason that I asked is because I was able to contact original places and I was told I can pay to them. How long does it take for credit report to update?  What will show on report after I pay some of those bills?

[CreditBob]

I have have been through this before. First, make sure that if the original creditor is taking the payments then the communication between them & the collection company has to happen. There are cases that when a collection company is involved, that the collection company has purchased the account. Therefore you will need to pay the collection company. But I would be careful & make sure that there is communication from the original creditor to the collection company. Also, make sure that you hold on to all your receipts. Document every mail correspondence all well of every phone call that you make. Also, write down the day, time, date, name of the person that you talked to, & the phone number & extension number

This is how it appeared on my credit report. The original creditor did report all the late payments as well as what is called the "WRITE OFF OR CHARGE OFF". In addition to that a collection company may or may not add the collection to your credit report. But when you do pay off the balance then it will state satisfied or paid in full. If the collection company agrees for you to pay loess to satisfy them, then it will state"ACCOUNT SETTLED FOR LESS OR SETTLED FOR LESS THEN THE ORIGINAL AMOUNT". The only bad thing about that is future lenders may or may not extend credit. Each one is different and will most likely look at each individual situation differently.

[RobertEG]

If the OC has only assigned the debt to a debt collector (i.e., they have not sold the debt), then both the OC and CA will continue to show the debt.  If the OC still owns the debt and agrees to accept payment, then the CO will update the status of their OC account to paid, and update the balance to $0 in their account.  They will notify the debt collector that the debt is now paid.  This requires the debt collector to terminate further collection activities, and to also update the balance to $0 in the CA account.

Those are the requred updates to your CR.

If you are able to secure a prior PFD acceptance by the OC, then th OC will delete whatever was agreed upon in the PFD agreemnt from their OC account reporting.

However, the OC cannot agree to or compel the deltion of any prior reporting done by the debt collector in their CA account.

[LIGHTNIN]

Hi and Welcome to the forums,

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blondy1111 wrote:

  when I pay off my debt to original creditors instead collection agencies, what kind of affect does that have on my report?

An OC reporting negatively  dings your CS, a neg OC with a CA reporting the same debt dings your CS even More.

If the OC owns the debt pay them, and ask to have the CA pulled back.

If the OC sold the debt to the CA, the best thing to do would be to use a PFD (pay for delete) letter.

I suggest reading What Steps Do I Take? DV? PFD? for more info.

  How long does it take for credit report to update? That will vary,but most of the time 30-60days,some maybe longer.

 What will show on report after I pay some of those bills?

 A CO is report as a Paid CO, CA as a Paid CA and if paying less then amount owed,thats is what it will show.

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Oh that reminds me, to let you know when paying less then amount owed or settled for less then......

In your agreement with the OC/CA make sure it says  "settled for less then amount owed but considered Paid In Full."

Because they can come after you for the balance,later on.Sometimes the OC will sell that balance to CA,or the CA sell to another CA.

I would hate to see that happen to anyone.So make sure to protect yourselves and do it in writing.