What will my credit report show if I choose to settle an old credit card account with a debt collector?
Bear E asked:
I would like to settle a few closed credit accounts that have been charged off and bought out by debt collectors. The collection agency is offering me a discounted rate to pay off this account. If I choose this option, will my credit report eventually show this account closed and paid off, as stated by the agency?
Nintendo Wii Fit
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I would like to settle a few closed credit accounts that have been charged off and bought out by debt collectors. The collection agency is offering me a discounted rate to pay off this account. If I choose this option, will my credit report eventually show this account closed and paid off, as stated by the agency?
Nintendo Wii Fit
August 31st, 2008 at 1:30 am
It will be shown as a charge off which will be on your credit for 7 years. you might want to choose another avenue if you can.
September 2nd, 2008 at 10:35 pm
It will not come off your credit report for 7 years, unless you make an arrangement with the original creditor in exchange for paying it off.
If it has been purchased by a debt collector, you probably don’t have to pay it at all. Since the debt collector didn’t loan you any money, you can easily remove any entry they put on your credit report.
You can get a free credit repair report, and also check your state’s statute of limitations on collecting debts at the site below.
September 4th, 2008 at 9:38 pm
I’m an expert on this, I would suggest you take a tour here ,there are expert’s tips there.
September 6th, 2008 at 3:23 pm
Think very carefully before you do this. Depending on your state, debts are only legally collectible for a certain period of time. In addition, they can only be reported for a certain period of time. Depending on when the last activity was on your account, you may have passed this time threshold, or are approaching it, but paying a lesser amount will re-start the reporting time clock. Do some research and find out what the statute of limitations are in your state. You may have to live with a crappy credit report for just a little while longer until such time when the negative stuff begins to fall off.
This site also provide some tips about this -
Have a nice day.