Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
bemend23

0 Contributions
0 People Helped
Pay a collection account set to come off record in a couple months?
I have an account in collections from 6 years ago for $115. My Experian credit report lists the status of the account as continuing on record for about 4 more months. Is it better for my credit report/score to try and pay the debt or to just wait it out?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-5 of 5Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7370 Contributions
3810 People Helped
Most Helpful Response

FDCPA rules apply

Helpful to 3 out of 3 people

Under the Fair Debt Collections Practices Act, debts are subject to collection only if the statute of limitations for collections (which varies by state) has not expired.  In my state, it's 6 years.  In all cases, debts will be reported for 7 years, sometimes longer in the case of judgements, tax liens or bankruptcy.

From what you reported as being on your Experian report, this debt has already been charged off, the Statute of Limitations for collection is past and it's about to fall off your credit report.  Leave it alone and let it fall off. 

1 Contribution
1 Person Helped

Wow! I'm Shocked!

Helpful to 1 out of 1 people

OMG!!! What is that person trying to do to you? If you pay it WILL go on your CR for 7 yrs as PAID IN FULL. If you don't they may try to resell it but they can't restart your date but that doesn't mean that they won't try to. Keep good records and dispute it if they do. BTW if you wait it out they still have 6-9 months to remove it after your 7 years are up. Get ready for a fight because they won't just drop it from your report.

Top Contributor

Reply by
jwsister

7370 Contributions
3810 People Helped

The FDCPA was enacted by Congress in the late 70s to end the "enforcer" tactics of collection agencies and assist those who's had hard times.  That's why a Statute of Limitations was set up, so that debts don't end up being perpetual hassles.  After 6 years (the SOL in most states) the debt is legally uncollectable, and after 7, it would drop off.  That's why I told bmend23 to let it ride so it would drop off.  His credit report already took a hit due to the charge-off, so why restart the debt by making a payment. 

While my general recommendation is to pay bills in full, when the law works on one's side, it should be utilized. 

FYI-the only debt that does last forever until it is paid off is student loans and that is due to a quirk in the bankruptcy law of the late 80's or early 90s  that the student loan industry managed to get passed.  Otherwise, the majority of debts have a Statute of Limitations making it illegal to attempt to collect on debts that are past a specified age.

2 Contributions
1 Person Helped

wait!

Helpful to 1 out of 1 people

If you pay, it will remain on your credit report for another 7 years from date of payment. It will clear in 7 years and won't affect your credit report. If paid, it will show up as paid from collections and starts all over.

Top Contributor
32 Contributions
79 People Helped

Pay It!

Helpful to 1 out of 2 people

The Collection Company will most like sell the debt to another collections company and hit you with another 7 years on your credit.  Pay the debt and request that they remove the delinquency from your credit report!.

2 Contributions
1 Person Helped

keoke779 is inccorect. all collections are to remain on file for 7 years regardless of who they sell it to.

Results 1-5 of 5Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.