ccard debt close to SOL, but I want good credit. What do I do

[f1x1ncr3d1t]

State- Vermont
I have a dept store CC that was never paid off. on my report it was last active on 12/02 through the dept store(reported 7/06), but I have another listing from asset acceptance regarding the same cc. the asset acceptance opened 3/06 last active 7/06. the debt is for a dandy 1910$ now.

my questions are:
When will this debt become uncollectable because of the SOL for my state ? 6 years from the dept store listing or the collection agency listing

When it becomes uncollectable will it fall off from my credit report? if not, will it ever?

If SOL does not wipe this debt from my credit report will paying a settlement them to repair my credit/
what kind of reduced payoff could I haggle for?
I heard they buy junk debt for pennies on the dollar. Is this true ?

what do I need to make sure they do when I make a payoff deal with them to ensure maximum credit repair from said transaction.


-my credit needs all the help it can get, thanks in advance

[debtcollector`]

Originally Posted by f1x1ncr3d1t

State- Vermont
I have a dept store CC that was never paid off. on my report it was last active on 12/02 through the dept store(reported 7/06), but I have another listing from asset acceptance regarding the same cc. the asset acceptance opened 3/06 last active 7/06. the debt is for a dandy 1910$ now.

my questions are:
When will this debt become uncollectable because of the SOL for my state ? 6 years from the dept store listing or the collection agency listing

The debt will never become uncollectable in your state.

Originally Posted by f1x1ncr3d1t

When it becomes uncollectable will it fall off from my credit report? if not, will it ever?

Although there are exceptions, most times debt stays on your credit report for 7 years plus 180 days of first default after which the account is never brought current.

Originally Posted by f1x1ncr3d1t

If SOL does not wipe this debt from my credit report will paying a settlement them to repair my credit/
what kind of reduced payoff could I haggle for?

That really depends on how well you negotiate. I have a posting on negotiation -- search for it.

Originally Posted by f1x1ncr3d1t

I heard they buy junk debt for pennies on the dollar. Is this true ?

Sure. The grocery store buys the milk they sell for pennies on the dollar too. However, it doesn't matter. You owe the face value of the debt; just like you pay the face value for a gallon of milk.

Originally Posted by f1x1ncr3d1t

what do I need to make sure they do when I make a payoff deal with them to ensure maximum credit repair from said transaction.

They will report the debt as either paid in full or settled for less the full amount. Then you wait out the remainder of the seven years previously mentioned.

DC

[f1x1ncr3d1t]

So If I understand you correctly I should settle, and in 7 years I should have a clean credit history. One more question. How do the two credit postings paid in full, settled for less affect your credit score (prior to the 7 year mark) ? Are they the same? When you settle debts would you agree to put a paid in full on a credit history , if it was settled for less ?

[wnbama]

Google...Asset Acceptance... You will find ALOT on them....and their practices.

In my case (I'm in Alabama, laws are diff in each state) I had 7 months till mine rolled off my credit and they "tried" every thing in the world to get me to pay something on it, they would send me a letter telling me they would settle it for xxx, I would call and try and settle it, and they would say we never sent anything to you. Now, this was not easy, I had to send them 3 cease letters and my boss had to get them on the phone 3 times to tell them they was going to casue me to lose my job if they did not stop calling my employment So, I made copies of EVERYTHING sent copies and letter to the FTC, AG and CC'd them on it. It was amazing how they finally left me along.....

It is now off my credit as of last Stepember on time from the last date of activity. The people I spoke to at the FTC said they get a complaint a day on these people.


I wish you luck with them.

[Debt Guy]

How do the two credit postings paid in full, settled for less affect your credit score (prior to the 7 year mark) ? Are they the same?

Technically, the status is different paid vs. settled. However, on something this old there is no discernible difference in your credit score.

When you settle debts would you agree to put a paid in full on a credit history , if it was settled for less ?

Creditors are obligated under the FCRA to report accurately anything they report. Reporting is optional. You can ask, but it is very unlikely the creditor would agree to delete the tradeline.


A different thought: credit scores are not logical.

For example, assume you paid the debt in full. The creditor will update the tradeline on your credit report to reflect the new status. That means the "last reported date" is updated to now. That makes the activity on the tradeline appear "recent" and will most likely reduce your credit score. Credit scores are very highly weighted to the activity during the most recent 24 months.

In terms of the decision you are contemplating, it is appropriate to consider the impact on your credit score but the credit score should not be the primary factor. The decision to pay or to settle this debt should be based on your tolerance for the risk of litigation. What do you think will happen to your credit score if you get sued?

[debtcollector`]

Originally Posted by Debt Guy

For example, assume you paid the debt in full. The creditor will update the tradeline on your credit report to reflect the new status. That means the "last reported date" is updated to now. That makes the activity on the tradeline appear "recent" and will most likely reduce your credit score. Credit scores are very highly weighted to the activity during the most recent 24 months.

The only flaw with Debt Guy's reasoning is: Most CAs update credit reports every month regardless of whether or you have paid, so settling or paying in full will be good for your score.

DC

[Ladynred]

will paying a settlement them to repair my credit/

NO, it will not ! Creditors may see it as a positive move to pay the debt but it WILL NOT REPAIR YOUR CREDIT and it WILL NOT INCREASE YOUR SCORES !! A settlement is STILL a negative.

Paying off this old debt won't help your credit a whole lot, but it also will NOT report for an additional 7-1/2 years if you do settle it. The reporting period on a negative tradeline is 7-1/2 years FROM THE DATE OF FIRST DELINQUENCY with the original creditor. NO ONE can legally change that date, if they DO change that date, it will be illegal re-aging, a violation of the Fair Credit Reporting Act. By your dates, this account should fall of your reports some time in 2009.

NO collection notation is EVER a positive!

[Debt Guy]

Most CAs update credit reports every month regardless of whether or you have paid,

Some do and some don't. Not sure I could say most do -- I'm leaning more toward most don't. But, it is probably academic as the OP has no control over whether the DF is or is not a regular reporter.


I probably should have told the OP to just look at her credit report and see if the last report date was old or recent and then factor accordingly.

For the OP -- there is a score simulator program at [url]www.bankrate.com[/url]. It will let you play with variables and get a feel for the impact.

[f1x1ncr3d1t]

Thanks to all that responded. All view points have helped me greatly. I'll put in a good word for y'all if I bite it first.