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Discussion Starter #1
i've got a couple of collection accounts on my credit that are really killing my credit. i've been doing a lot of research and everything i've read says that if you pay it off, it will still be on your credit but that it helps your credit rating. so i've been planning on paying off a bunch of stuff but then i got an arguement with someone who said that was a waste of money. he was saying the stuff falls off in 7 years and that it doesn't really help even if it is paid off because it is still on your credit. PLEASE help. what is the best thing to do?
 

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How you doin'
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28,254 Posts
if you pay it off, it will be much easier to get it off of your credit. you can dispute it...(it will show up as a charge off), and they will usually not mess with sending any info in, if the account is paid in full. now, they're supposed to drop off in 7 years, but they will sell the debt over and over again, and the new debtor will keep it on your credit. i really don't know the laws 100%, but i've seen this happen to several people. i think that you would be better off paying the debts, then disputing them, to get them off of your record, myself.

brad
 

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Served Time
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1,175 Posts
Read this.

Pay close attention to this at the bottom of the page:
So, in closing, the point is, yes it happens but is it legal? No. Can it be fought & removed if it does happen? Yes. Do creditors really go by the before & after dates anyway? NO! Most of them don't even understand it and merely follow the current revised FCRA. If you have an outdated item on your credit reports, request immediately that it be removed according to the FCRA.
 

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No Cerveza... No Trabajo
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Morally, obviously, you want to pay them off. You asked for the money, now paid it off.

Having said that, contact them and negotiate to have them remove any negative tradeline on your credit report in exchange for some payment (could be 100%, could be 80%, could be 50%). And make sure you get it in writing. Some will work with you, some won't.

Although it doesn't seem like it, you are in the driver seat. You have something they want, their money.
 

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Dirty Mexican
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good tips.
 

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Served Time
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Also check out this guy.
Bud Hibbs.
In most cases he advises NEVER to get back involved with paying a debt that has went to a collection agency EVER! I agree. You can legally fire a collection agency and make the debt go back to the original creditor. Then as 01WhiteCobra said, you are in the drivers seat. And MAKE SURE to get it in writing!
 

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if you have an active debt, meaning not paid in full yet, not charged off (i.e auto loan), then you cannot remove any negative remark on your credit for seven years. now, if you have a charged off debt that has been on your credit for more than 7 years, you can dispute it and get it removed, cause legally it has to be removed after 7 years. I work for a collection agency, so if you have any questions at all, let me know, i'd be happy to help.
 

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No Cerveza... No Trabajo
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21,924 Posts
02GTCOUPE said:
if you have an active debt, meaning not paid in full yet, not charged off (i.e auto loan), then you cannot remove any negative remark on your credit for seven years. now, if you have a charged off debt that has been on your credit for more than 7 years, you can dispute it and get it removed, cause legally it has to be removed after 7 years. I work for a collection agency, so if you have any questions at all, let me know, i'd be happy to help.
You can also have it removed before 7 years.

It's done everyday.
 

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another word of advice, if you have any lines of credit open to you that you dont use, like a department store credit card, or anything like that, close it out if you have a $0 balance. that way it shows you dont have alot of different lines of credit. i was denied credit to one place due to the fact that i had too much credit extended to me already, which was the old credit cards or department store accounts that i did not use....fyi:)
 
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