I made really bad decisions in college by applying for credit cards in return for free lunch! Of course I spent too much money, and my accounts went into collection.
I have since graduated and now have a stable job/income and am trying to pay everything off. When I first started working, I paid several accounts delinquent accounts in full and I now know that I cannot have that removed.
My question is - I still have 3 accounts that I owe on. These accounts will be "removed" from my credit report in 2011, 2012, and 2013. I can afford to pay all of these in full. Should I send a "pay for delete" letter, or just pay them off? Will I make my credit worse by paying on these and restarting the time they will be listed on my report if they don't accept my "pay for delete" letter?
Any help would be much appreciated!
Hello and welcome to credit magic, If it were me in your shoes I would see if you could get a pay for delete and some type of settlement on this debt. First though what state are you from? You want to be sure the SOL has not expired. If it is expired then once you make a payment it will restart the clock. The closer the debt is to the SOL the more likely they are to settle the debt for less than what is actually listed. If a debt collector now owns the debt you can still get a pay for delete but the original creditor will still be listed on your account. Also have you sent debt validation to be sure the collector legally owns the debt?
Hi SC,
I think you should start off with the 2013 debt since it is the farthest from falling off. But you must be sure about SOL, since starting a payment nearing SOL or past SOL will not be in your favor. Rather you will lose money. Otherwise, if these are not nearing SOL, then you should try to settle the debt by making a payment plan. In this case you can send a pay for delete letter to the creditor or CA.
I live in Texas. The account that "goes away" in 2013 was placed in collections in 2008. I have no idea what all of that means!
I appreciate the help so much! Thank you!
Hi SC,
It means that this debt is the farthest from the SOL. The Statute of limitations or the SOL is a time period that the creditors get to bring any legal action against the debtor. Once the debt is past SOL, then the creditor cannot sue the debtor anymore for collecting the debt. In Texas the SOL for debts is 4 years. Hence, it is best that you pay this debt. In case you do not pay, the creditor can sue you and get a judgment against you.