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Should I even bother?

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Should I even bother?

Ok I wasn't going to mess with this last collections acct but now I think I want some advice. I finally have 100% payment history, 38% credit utilization (bringing this below 30% within the next couple months), my credit age is eh but can only get better with time... My scores right now are at about 630-645 for all 3 bureaus (this was at 57% utilization my report hasnt updated for new balances yet).

 

The issue holding me back (I think) is ONE open collection acct with cavalry portfolio services which was opened Oct 2014. It is for a balance of $592. It is passed the statute of limitations so my understanding is they can no longer sue and I have not contacted them regarding this debt. I was thinking I'd just leave it alone since it is so old but I'm second guessing myself. What is the best plan of action? Pay it in full? Settle? I don't want to hurt myself more by addressing this and all my research is conflicting..

Message 1 of 4
3 REPLIES 3
Established Contributor

Re: Should I even bother?

If your applying for credit before the fall off date you could pay it. Since its out of the sol I would not pay it full I would settle for less.






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Message 2 of 4
Senior Contributor

Re: Should I even bother?

If the time limit to sue on the old debt expired under your state's statute of limitations, that does not mean that a creditor or bill collector must stop contacting you about it. They can ask you to pay the debt. They just can't sue you—or threaten to sue you—for it. So you could try to strike a deal and try a PFD. Bigger problem is your util. Get it below 8.99%. You'd probably gain more points that way for now.





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 3 of 4
Senior Contributor

Re: Should I even bother?


@Nbenner wrote:

Ok I wasn't going to mess with this last collections acct but now I think I want some advice. I finally have 100% payment history, 38% credit utilization (bringing this below 30% within the next couple months), my credit age is eh but can only get better with time... My scores right now are at about 630-645 for all 3 bureaus (this was at 57% utilization my report hasnt updated for new balances yet).

 

The issue holding me back (I think) is ONE open collection acct with cavalry portfolio services which was opened Oct 2014. It is for a balance of $592. It is passed the statute of limitations so my understanding is they can no longer sue and I have not contacted them regarding this debt. I was thinking I'd just leave it alone since it is so old but I'm second guessing myself. What is the best plan of action? Pay it in full? Settle? I don't want to hurt myself more by addressing this and all my research is conflicting..


It really depends on what your goals are.   If you think you'll need to finance something or apply for credit before the account is due to fall off of the account (7y + 180d), then I would go for a PFD (whether that's a lower settlement or full amount) if you can swing the money.    If you don't need to worry about finance/credit/credit checks before the fall off date, then I'd ignore it and focus on other areas of your financial health.

Nov 2019


Garden goal: keep on keepin' on
Usually a faithful practitioner of AZE5or6or7; working on AZE1or2 and grumbling about it.
Message 4 of 4
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