Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




Most important items

Reply to topic
Money Talk > Credit & Loans

Author Thread
Tracyman0111
New Member


Cash: $ 0.90

Posts: 4
Joined: 10 Jan 2014
Location: Beavercreek, OH
Most important items  Reply with quote  

Hello everyone! I've recently come into some money through an inheritance from my grandmother, and I would like to take a great deal of it and pay down a lot of negative accounts on my credit report, and I have a few questions about that.

First of all, I was told by a collection agency rep (keeping in mind the source ) that if I talked them down into a settlement and paid THAT amount, it would not have as positive of an effect on my credit as what paying the full original amount would have. Is this true?

Secondly, I have 3 accounts currently in active collections, so I definitely plan to pay those, but I also have 8 or 10 accounts over the past 6 or 8 years, many of which are listed on my Transunion report as 'charged-off'. Would it do me any good whatsoever to pay these items?

With this inheritance, I'm hugely focused on paying down debts, repairing my credit, and starting a small savings, so.....I would really rather not throw money at years-old accounts if they will not have any positive effect on my credit.

Thanks for everyone's advice!!
Post Fri Jan 10, 2014 1:39 am
 View user's profile Send private message Send e-mail
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
Re: Most important items  Reply with quote  

quote:
Originally posted by Tracyman0111
First of all, I was told by a collection agency rep (keeping in mind the source ) that if I talked them down into a settlement and paid THAT amount, it would not have as positive of an effect on my credit as what paying the full original amount would have. Is this true?


No. You will show all the delinquent history still, and the balance due will be zero. It will show as a charge off until it falls off your record.

quote:
Originally posted by Tracyman0111
Secondly, I have 3 accounts currently in active collections, so I definitely plan to pay those, but I also have 8 or 10 accounts over the past 6 or 8 years, many of which are listed on my Transunion report as 'charged-off'. Would it do me any good whatsoever to pay these items?

Anything that is over 7 years should fall off the report. Do nothing to those accounts, and they disappear at the 7 year point. Pay them off, and they remain for another 7 years after the last activity, which would be you paying them off. In other words, it's actually detrimental for you to pay anything that is negative and has been inactive for around 7 years. Those over 7 years should have disappeared already.


quote:
Originally posted by Tracyman0111
With this inheritance, I'm hugely focused on paying down debts, repairing my credit, and starting a small savings, so.....I would really rather not throw money at years-old accounts if they will not have any positive effect on my credit.

Thanks for everyone's advice!!

We don't do "advice." We do "what our experiences are/were" and "here's what I think." You go to an "adviser" and pay him for his "advice." That's why he gets the title, and why folks here do not.
Post Fri Jan 10, 2014 2:58 am
 View user's profile Send private message
Tracyman0111
New Member


Cash: $ 0.90

Posts: 4
Joined: 10 Jan 2014
Location: Beavercreek, OH
 Reply with quote  

Well thanks either way!! So, as far as my first question, was the collection agent basically feeding me a line of crap regarding paying a settlement vs paying the full original amount? I kind of figured it would be that way, I'm sure that their salary is based somewhat on how much money they collect.....
Post Sat Jan 11, 2014 2:41 am
 View user's profile Send private message Send e-mail
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
 Reply with quote  

quote:
Originally posted by Tracyman0111
So, as far as my first question, was the collection agent basically feeding me a line of crap regarding paying a settlement vs paying the full original amount?

There is no difference between getting a charge off that's paid off and getting a charge off that is negotiated. When you are done in either case, it will show a zero balance and still have the negative charge off marks on your credit report.
Post Sat Jan 11, 2014 4:55 am
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016