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I have 5 different negative debts on my credit history, most of them will expire within the next 2 years. Would I be better off paying those debts or letting them expire? I was told if I pay the debt, it still shows on the credit report for 7 years. If it will still be there, should I just ignore it and wait for it to vanish or is there a benefit to paying it off now? Will my score go up if i pay it all off now? Or will it remain the same credit score even though it has been paid?
Depending on your state, paying the debt can extend the time that it can be reported on your credit. if these debts are 5 years old then what state are you in?
I guess there are certain state-specific rules regarding the statutory period. It also depends on the civil debt collection codes belonging to your state.
However, if you make a payment towards a debt which is about to expire, then it resets the SOL clock.
I am in Florida. I would like to repair my credit the best way possible however my fear is if I pay off all of the debt now, it will extend the time that it appears on my credit report. The goal here is to raise my credit score, so am I raising it by paying off the debt or am I hurting it because eventhough the debt will be showed as "paid" it will remain on the report for another 7 years?
Florida Statutes of Limitation
Contract or written instrument and for mortgage foreclosure: 5 years. F.S. 95.11.
Libel, slander, or unpaid wages: 2 years.
Judgments: 20 years total and to be a lien on any real property, it has to be re-recorded for a second time at 10 years.
The limitations period begins from the date the last element of the cause of action occurred, (95.051). NOTE: The limitation period is tolled (stopped) for any period during which the debtor is absent from the state and each time a voluntary payment is made on a debt arising from a written instrument.
Almost all other actions fall under the 4-year catch-all limitations period, (F.S. 95.11(3)(p)).
so what is the actual date of these debts?
the date reported is not the same as the date of first serious delinquency. this would be 30days after the last payment and it is where the legal statute of limitations will start from. these debts will be reported for 7 years from DOFD by federal statute (unless you get them deleted.
so, are you saying that whether I pay them off or not, they will still remain on the record for the entire 7 years?
How do I go about getting them deleted? is that even possible?
sorry for my lack of knowledge on this subject... guess that is the reason I am here in the first place...
you can get something deleted by coming to an agreement with the collection agency that they will delete after full or partial payment.
This is a very confusing area of credit repair. A lot of people talk about Pay For Delete, but no one explains what it is or how to do it. Pay for Delete is mediated settlement on debt. Basically, the creditor agrees to change the way a debt is reported in exchange for payment.
Your credit report is actually paid publication. The credit reporting agencies are well paid to compile a database of your financial accounts and how you pay your bills. Every time you apply for credit, you agree to let your credit check this database. The federal and state laws that govern how your credit is reported are regulations to prevent companies from reporting debt without proper foundation or proof.
Read more: How to Pay For Delete negative items on your credit report | eHow.com http://www.ehow.com/how_4820192_delete-negative-items-credit-report.htm…
Thanks for sharing this information with me. I do believe I now understand the best way to handle this moving forward.
my intention is as mentioned before to repair my credit report best way possible. So, sounds like the best thing I can do at this point is negotiate the payment with the debt collector by having them agree to the deletion of the negative report before making the payment.
Thanks again for the information provided.