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credit score

If i settle with a company on an account that has been negative and closed for over 2 years will this help my credit score or am i better off just waiting a couple more years and will disapear on its own.

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mandar

Asked by mandar at 6:24 PM on Apr. 6, 2010 in Money & Work

Level 4 (33 Credits)
Answers (6)
  • To actually settle would be the best move imo.
    KairisMama

    Answer by KairisMama at 7:25 PM on Apr. 6, 2010

  • HONESTLY IT WILL HELP YOUR SCORE WHEN IT DROPS OFF CAUSE THE SYSTEM GIVES YOU A GOOD SCORE THE MORE YOU ARE IN ACTIVE DEBT, THATS YOUR FICA SCORE.

    YOU DONT WANT A GOOD FICA SCORE IT MEANS YOU ARE IN ACTIVE REVOLVING DEBT.
    Anonymous

    Answer by Anonymous at 9:26 PM on Apr. 6, 2010

  • It won't help your credit score at all. the only thing that helps is having accounts open that pay every month.
    Anonymous

    Answer by Anonymous at 10:19 PM on Apr. 6, 2010

  • It depends- Your credit score is probably still showing negatively from having an unpaid debt in collections, so paying it off is going to look good. Settling the debt for less that is owed, will probably hurt it- or at least creditors won't want to see that you didn't pay all that was owed. So it might not hurt your actual score too much, but it will probably be a turn off to certain lenders.

    On the other hand it's pretty much fruitless to wait for it to drop off. Credit reports show activity on accounts- negative activity for up to seven years. Every month you don't pay it, is activity. Like a missed payment can show up even though you didn't do anything... same thing. They send you a bill even if it's two years later, you don't pay- they can report it. It's not falling off after seven years unless you get it behind you.

    Plus it's an honesty thing. Pay your bills if you can :)
    Anonymous

    Answer by Anonymous at 10:44 PM on Apr. 6, 2010

  • Your credit is already tarnished, however, if you settle the account out it looks better then just letting it go. Plus if you just let it go the account could get sold and that starts the statute of limitations all over again...it could hang over your head for longer than you think. Once you settle out that account, your credit score score should improve...not a lot but you will gain some points. It will improve your DTI, which in turn will improve your credit score!

    Settling tips: When you are negotiating with the creditor...DO NOT take the first offer they give you! Go in there with an assertive attitude and let them know you know your stuff! Make the call with a goal of what you want to pay in mind. I would not make an offer of more than 50 cents on the dollar. Start low like 10 cents on the dollar and work your way up from there and don't budge on your goal. MOST IMPORTANTLY REMAIN PATIENT! Don't let the creditor bully u
    DFSNIKKI

    Answer by DFSNIKKI at 10:16 AM on Apr. 7, 2010

  • If you have any more question please feel free to message me...I own my own debt settlement company and have negotiated many accounts on my clients behalf...I'd be happy to walk you through it! Have a great day and remember not to stress! You might want to do some Yoga or whatever relaxes you the most before you make that phone call! LOL

    Good luck!
    DFSNIKKI

    Answer by DFSNIKKI at 10:20 AM on Apr. 7, 2010

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