What will my credit report show if I choose to settle an old credit card account with a debt colle?
reda 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?
Jamie
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?
Jamie
July 5th, 2009 at 7:17 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.
I’m not saying that’s the moral or ethical thing to do, but we’re not here to judge anyone’s moral compass (or lach thereof). Here is a good site to get free credit report
July 8th, 2009 at 8:30 pm
A collection agency will promise anything. Get it in writing from them. And make the check out to the Original Company AND the collection agency. Get every word in writing. And keep copies of all your letters to them. So if it does appear negatively on a credit report, you have the documentation to get it removed. But anyway, if you settle an old debt, the credit report should indicate a ‘paid’ status. Good Luck.
July 10th, 2009 at 7:54 pm
it will show as paid or closed eventually, but don;t expect those negative marks to DISAPPEAR off your credit report until at least 7 yrs have passed after the last transaction/payment