If I Pay, Will I Pay?

Submitted by 4mycredit on Mon, 07/28/2008 - 18:58
Forums

I have a CA account that has been on my reports since 4-03. The SOL is nearing, and they are becoming aggressive. I am now able to pay, and would like your thoughts on a FICO score drop. It is my only bad mark, and my scores are 710+. So, am I also going to pay with points? If so how many? I am afraid it will be huge. Thanks for your help.

Why would you bother if it is so close to the statute of limitations? Are they going to file a summons? You will still have time to work it out after the summons is filed if that is the case.

You may want to see what they will do up to the point of the sol expiring, they may file a summons, but you will have time to file your answer and set up a payment plan even after they file a summons, and if they don't file a summons their loss.

I know from experience that if you pay it off it still stays on your report for seven years., paid or not.....

Tue, 07/29/2008 - 02:32 Permalink

Agreed...I dont see your reasoning to do this? Can you explain?

Tue, 07/29/2008 - 15:32 Permalink

if they are getting aggressive they may sue you which will KILL your CS you have until 10/10 for them to sue you. I would advise you to settle the debt with them and try for a PFD. Paying the debt wont cost you any points but, if they dont remove the mark you wont gain many either

Wed, 07/30/2008 - 20:29 Permalink

Hi 4mycredit
If they threaten to file summons, pay off the dues. You can come to a repayment agreement with your CA to repay off your debt because a judgment against you can lower your score by 50 to 100 points. But if your SOL has expired don't try to pay it back because if you pay even a small amount after your SOL expiry, the SOL will rewind and the CA can pull you to the court.

Mon, 08/04/2008 - 08:46 Permalink

If at all possible try and pay it before a judgement against you, you do not want to do this type of damage to your score.

Mon, 08/04/2008 - 21:05 Permalink

Just curious, if anyone knows. If you have a 'Charge-Off' on your CR, how many points can this drop your score?

Mon, 08/04/2008 - 21:11 Permalink

it depends upon the age of the listing. An old account can take 20-40 points while a new one can a bomb your credit as much as 100 points depending on your credit history

Mon, 08/04/2008 - 21:46 Permalink

wow, big difference, so my accounts are from like 2003 I think, is that considered old?

Mon, 08/04/2008 - 22:58 Permalink

Thats when mine are ..is it old? GN yours should be out of SOL or near it.

Tue, 08/05/2008 - 01:22 Permalink

Gosh...that IS alot of points. Seems like when you 'take care' of a debt, another one comes along. LOL I DO have a car being financed right now..and keeping up with the payments, I may add. Will this bring my score up, from time to time? I know fixing your credit doesn't happen over nite.

Tue, 08/05/2008 - 02:24 Permalink

It should bring up your score if you build a good payment history with this payment.

Tue, 08/05/2008 - 02:56 Permalink

Well......I plan to. So far, so good. The finance company really works with me on things..that's for sure.

Tue, 08/05/2008 - 02:59 Permalink

That is great, maybe things will start looking up for a change for you. Did you buy a new car?

Tue, 08/05/2008 - 03:05 Permalink

A company that works wwith ya is worth doing business with. If ya got a new car, what kind?

Tue, 08/05/2008 - 03:07 Permalink

About 2 years ago, I financed a good, used Jeep Cherokee. I have it financed through Citifinancial. They do have a bit higher % rate, if you have bad credit. I was VERY surprised ANYONE took a chance on me. My % rate has gone down some, because of my payment history with them. So, more of my payment is actually going toward the balance, not the priciple. I know some people don't like finance companies, but....they 'work for me ( right now, anyway.)

Tue, 08/05/2008 - 03:11 Permalink

We had to use them just a few short years ago. It is one way of building new credit even if at a higher interest rate. Sometimes we do wat we gotta do.

Wed, 08/06/2008 - 02:40 Permalink