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Question By
jaccid

41 Contributions
133 People Helped
Paying Very Old Debts Makes No Difference in Scores?
I have some very old debts, one a car loan and a couple of payday loans. I am being told that since they are several years old, there is no point in paying them, as they will show paid late and wont help my score any, better to let them fall off in a few months. How much truth is there to this? Thanks.

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Top Contributor
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It's true

Helpful to 3 out of 3 people

Most bad debt will simply roll off your record seven years from the date it first went bad. If you can wait it out, your record will clean itself. It's also true that the damage has already been done and any attempt to pay the debt now will have minimal, if any, effect on your score. Even worse, though: if you contact the creditors now to make arrangments for repayment, you risk "re-aging" the old debt, which keeps it on your record even longer than if you simply ignored it. It's a strange quirk in the credit system, but it is the reality.

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