If i pay how will this effect my score

Submitted by Bigstan on Sun, 05/30/2010 - 23:24
Forums
Credit repair

I have a vehicle reposed in 2006. Since that time the original creditor has the account listed on my report has reposed/ closed. They have not sold my account to a collector, or at least one as not contacted me or is showing on my report. I think the sol might be up on this..But it is confusing because i live and bought the vehicle in texas but the company is out of Illinois. I am just wondering if i should try a pay for delete with them, or would i be opening myself back up for legal action, and if they accept a pay for delete any ideas on how much that might improve my score

Aaron

Hi Bigstan,

As far as I understand, as you had bought the car in Texas, the Statute of limitations (SOL) of that state will apply. The SOL in Texas is 4 years for all kind of debts. Can I know the date of first delinquency? However, if the SOL has expired, that necessarily does not mean that you are no longer responsible for paying the debt.

If you want to pay the debt, and have the ability you can go forward and pay it off. Whatever, you do, get the payment agreement in writing. Before you make the payment, you can request the creditor to agree to a "Pay for delete" (PFD) agreement. If the creditor agrees to a PFD, your account status will get updated as "Paid". This can increase your score by some points.

However, as this an old unpaid account, this can lower your score by some points, if the creditor doesn't agree to a PFD. When payment is made on an old delinquent account, this brings the account to the present. The nonpayment on this account is then considered to be made in the present. Still, it is better to spy off the debt, as a "Paid" account on your report is much better than an unpaid one.

Thanks,

Aaron

Mon, 05/31/2010 - 09:25 Permalink
Bigstan

thanks for the help....i have every intention on fixing the issues with my credit..but this is by far the biggest one....i appreciate the advice and will probably be posting on further issues

Thu, 06/03/2010 - 12:45 Permalink
Aaron

Hi Bigstan,

Hope that you will be able to solve this problem soon. However, can I know the date of last payment on this debt?

Thanks,

Aaron

Fri, 06/04/2010 - 10:42 Permalink
sdchargers_63

(I have learned something, while posting on this Forum..LOL) If you happen to get a letter, from a CA, concerning this matter, OP..and the SOL has already expired, you don't need to call the CA back (However...I have called CA's back and told them the SOL has expired, in my state). ALOT of the time, the CA's will ask you if you want to "make arrangements" to pay the bill. If you say "yes", you just re-aged (started the SOL over) the entire debt and THEN they can come back and take action. I've had CA's tell me, "well, I guess you don't want to take care of your responsibilities", etc. Don't let that scare you.

Tue, 06/08/2010 - 21:07 Permalink