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When your personal loan/credit card balance is sold off

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Carloscda40
Regular Contributor

When your personal loan/credit card balance is sold off

Have a couple that have been sold off to those collection agencies.

Will setting up payments and paying them in full help my credit score?

 

I take it it's best to pay these collections vs letting them fall off credit report.

 

Have anyone had experience with this process?

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2 REPLIES 2
cashorcharge
Community Leader
Super Contributor

Re: When your personal loan/credit card balance is sold off

Ultimately, yes...you should pay them off.  Many places off what's called Pay For Delete so once it's paid, they would delete the entire record on your credit report.  This does vary by lender so I would ask up front and if they agree, get it documented somewhere...not just a phone conversation.

Message 2 of 3
ptatohed
Valued Contributor

Re: When your personal loan/credit card balance is sold off

Perhaps not the most moral / ethical solution (if they are authentic debt) but what I have done (and have been successful) (with medical bills/debt that was outside my insurance coverage that I didn't know about until after the care) is I dispute them with the bureaus(s).  Good luck.  

 

 

 

5% CB rotating: ;
Everyday 3% CB: ;
Everyday 5%: ;
Companion Card: ;
Everyday 2.2% CB: ;
Retired to sock drawer after AOD (kept alive w/ 1 purchase every 6 mo): ;
On my radar: ;
Still Waiting for an Invite: ;
No hope:
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