Debt settlement

[disneykid52]

What is the name of your state (only U.S. law)? Florida

If I settle or even pay in full the collections on my credit report will that start the clock again for removal time off my report? Right now they are 6 years old.

 

[TigerD]

What is the name of your state (only U.S. law)? Florida

If I settle or even pay in full the collections on my credit report will that start the clock again for removal time off my report? Right now they are 6 years old.

No, it won't.

DC

 

[disneykid52]

So it will reflect as "paid" and come off within a year? Will it make my score better after saying "paid"?

 

[bdancer]

So it will reflect as "paid" and come off within a year? Will it make my score better after saying "paid"?

Nope, it won't.

If this debt was defaulted 6 years ago, you may want to just let it age off. If you do opt to pay, you should be able to settle it for less than 10% in a lump sum payment. Get any settlement agreement in writing and don't give the collector direct access to your bank account.

Also, even when it does reach the 7 year point and age off, you won't see much change to your score. The older an item, the less impact on your FICO score. At 6 years, it isn't making that much difference in your score. At 7, you probably won't even notice a difference in your FICO score.