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Posted in Auto Loans
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Question By
wisecounsel

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Auto loan debt.
Got a call from a debt collector regarding an auto loan in the amount of $10980. the debt is almost 7 years old, i'm in the process of purchasing a house and they want to settle for under $1K. How would this impact my credit now that it is improved

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If it is not on your report and you settle, it should not impact your score.   If it is on your report and they update it to settled/closed it could be an increase in the score, although if it is nearly 7 years old, the negativitiy may have already figured out of your scores.   If your  mortgage broker sees it, he'll want to see it paid and closed.   See if the firm will accept pay for delete where it is removed altogether.   It is probably beyond the statute of limitations of your state and they may not be able to take legal action (check to be sure) which is why they are accepting 10 cents on the dollar.  I would think you have a good position in negotiation for pay for delete, although thats only in my opinion.

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