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Another FREE credit tip! 12/7/09

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Doc

Doc

Joined: 02 Dec 2008
Doc's page
Posts: 178
Location: McKinney, TX


1271 Magic Points

Subject: Another FREE credit tip! 12/7/09
 
Posted on Mon Dec 07, 2009 11:03 pm  

Did you know...

That paying a collection account off DOES NOT impact your credit score..?

The balance is inconsequential..!

Consider THAT as you make your decisions about paying off collections!
_________________
-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site...
http://www.omegacreditrepair.com
You can also get tons of information here!
http://www.doccompton.com
goodnatured



Joined: 03 Nov 2007
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Posts: 3931



437 Magic Points

 
Posted on Mon Dec 07, 2009 11:14 pm  

Thanks Doc,

Unfortunately, I have learned this the hard way, paid off four old, outdated account one year, thought paying them off would be a start to cleaning up my credit report.

It did absolutely nothing except move them to settled, paid in full, did nothing for my score.
Justin

Justin

Joined: 17 Jul 2006
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Posts: 1238



28944 Magic Points

 
Posted on Wed Dec 09, 2009 5:51 am  

Hi Doc,

Yeah right. Paying off collection accounts does not influence score in the short run. The listing stays on the report for 7 years as "paid as agreed" or "settled". But this does not impact the score. However, I think in the long run it will be counted as we paid off our debts. That will increase the score.
_________________
All the Best Smile
Justin
Doc

Doc

Joined: 02 Dec 2008
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Posts: 178
Location: McKinney, TX


1271 Magic Points

 
Posted on Wed Dec 09, 2009 4:37 pm  

No... The debt can only stay on the credit for seven years from the date of the first delinquency WITH THE ORIGINAL CREDITOR. The date you pay a thrid-party debt collector has ABSOLUTELY NOTHING TO DO WITH the age of the account, or how long it can stay on the report...

Again, the balance on a collection account is IN NO WAY calculated in the score. That information comes from FICO... The people who WRITE the scoring formulas.
_________________
-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site...
http://www.omegacreditrepair.com
You can also get tons of information here!
http://www.doccompton.com
simpletruth



Joined: 29 Sep 2009
simpletruth's page
Posts: 34



13 Magic Points

 
Posted on Wed Dec 09, 2009 5:08 pm  

So, I co-signed for two cars, one for my daughter and one for my nephew. Both have stopped making payments and their creditors are calling me for the payments, which I cannot afford to make, but if I would come up with the money somehow to pay them off, you're saying it still wouldn't help my crdit score. And will it stay on my credit for seven years or longer? Then what happens to it? Will the creditors write it off as a loss or what? When will it be removed? I have always had excellent credit before this.
Doc

Doc

Joined: 02 Dec 2008
Doc's page
Posts: 178
Location: McKinney, TX


1271 Magic Points

 
Posted on Wed Dec 09, 2009 5:17 pm  

If the accounts are charged off, no, the balances don't matter. If the companies sell the debts to collection agencies, you're likely to add new derogatory items to your credit, and THAT will have a negative impact on your score...

You can ask the companies to stop calling you, but unless you do so in writing, they won't.

Seven years from the date of first delinquency that led to the account(s) being charged off... No matter WHO buys the debt later, or when, and regardless of any payment arrangement made with the third-party.
_________________
-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site...
http://www.omegacreditrepair.com
You can also get tons of information here!
http://www.doccompton.com
sdchargers_63

sdchargers_63

Joined: 13 Aug 2007
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Posts: 1883



1915 Magic Points

Subject: credit
 
Posted on Thu Dec 10, 2009 6:32 pm  

Gosh.....what great advice!! Let me try and get SOME of this straight...LOL Ok....the account with the OC can stay on CR's for 7 (or so) years. What about the CA's that try to collect for them? Did I 'miss' that part?
Doc

Doc

Joined: 02 Dec 2008
Doc's page
Posts: 178
Location: McKinney, TX


1271 Magic Points

 
Posted on Thu Dec 10, 2009 6:38 pm  

No matter who, or how many companies buy it or collect on it, they are subject to the same date to determine the age of the account...

That said, they can still collect after the obsolescence (7 yr) period, subject to the statute of limitations in your state.
_________________
-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site...
http://www.omegacreditrepair.com
You can also get tons of information here!
http://www.doccompton.com
sdchargers_63

sdchargers_63

Joined: 13 Aug 2007
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Posts: 1883



1915 Magic Points

Subject: credit tip
 
Posted on Thu Dec 10, 2009 6:45 pm  

Mmm.......I think I'm a bit confused. If the debt is only suppose to stay on your Credit for that 7 years (and so many months), then how can the CA's STILL collect on it, after that?
Doc

Doc

Joined: 02 Dec 2008
Doc's page
Posts: 178
Location: McKinney, TX


1271 Magic Points

 
Posted on Thu Dec 10, 2009 8:01 pm  

If the statute of limitations is 10 years in a given state, then theoretically, a collection agency could still pursue written collection, calls, etc., after the 7 year obsolescence period.

(Unless of course, the debtor has asked them in writing to cease either.)
_________________
-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site...
http://www.omegacreditrepair.com
You can also get tons of information here!
http://www.doccompton.com
sdchargers_63

sdchargers_63

Joined: 13 Aug 2007
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Posts: 1883



1915 Magic Points

Subject: credit
 
Posted on Fri Dec 11, 2009 12:19 am  

OHH!! i get it now. Thanks for the clarification. In the state of PA (where I live) the SOL is 4 years. Your information is really valueable!! Thanks, again, DOC.
simpletruth



Joined: 29 Sep 2009
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Posts: 34



13 Magic Points

 
Posted on Fri Dec 11, 2009 1:31 am  

Well Doc I have a question for you. Someone told me that if you get a credit card in the mail and there is no collateral on credit cards, they really can't do much to collect. That is not much more than some scare tactic or threats of taking you to court. Is this true? And if you refuse to talk with them that eventually they will stop calling you. And if they sell it to collection, just don't sign any new agreement to pay on it, because this will start the SOL all over again.
sdchargers_63

sdchargers_63

Joined: 13 Aug 2007
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Posts: 1883



1915 Magic Points

Subject: cc
 
Posted on Fri Dec 11, 2009 1:36 am  

Well.I would think you would need 'collatral' on Secured CC's. You have to put a Deposit on them to active them.
fireyone



Joined: 26 Feb 2008
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Posts: 4246



123 Magic Points

 
Posted on Fri Dec 11, 2009 1:54 am  

Simple truth, Doc by far would be more able to answer this question but I would think that paperwork would come a long with that credit card received in the mail. Also once you use it it may be just like signing a contract. I do believe they can come back after you for the debt, especially if they can prove it is yours. Either way I would not take the chance.
sdchargers_63

sdchargers_63

Joined: 13 Aug 2007
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Posts: 1883



1915 Magic Points

Subject: cc
 
Posted on Fri Dec 11, 2009 2:00 am  

YEP, FIREYONE!!! Your right!! DOC is the expert!! I was just posting my 'personal experience' with a CC. I didn't even think of the 'contract thing'. That's true.....you do have some kind of contract to open a CC account...Secured or not.

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