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Old 06-12-2008, 06:29 PM
 
3,031 posts, read 8,566,518 times
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After some terrible years (filing bankruptcy and getting dismissed, having to sell our house, dodging creditors), we've been back on track with trying to rebuild our credit rating. My last check on my credit score was 635. Not great but not as terrible as a year or so ago. Husband is out of work again so I'm trying to keep up with everything--no new credit but playing catch-up with old debt and of course trying to make sure the monthly utility and housing bills get paid.

Anyway, I got a letter from a collection agency today (still getting those every once in a while) offering to accept a small percentage of a larger debt if we pay it off in the next 10 days. I had always thought this was a good deal but then I read something here that led me to believe that by paying it off to a collection agency, it causes the debt to look "new" and can lower your credit score?

We're not planning on buying a house again for at least a year, possibly two (have to save more for down pmt and need to get that credit score up). What would the experts suggest I do with this creditor/collection agency?
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Old 06-12-2008, 06:32 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,709,997 times
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depends on how old the collection is...

it maybe past the Statute of limitations.
If you are willing to payoff a collection, make sure to pay for deletion.
Negotiate for them to take it off your credit report with your payment.
MAKE SURE TO GET IT IN WRITING!!!!
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Old 06-12-2008, 06:35 PM
 
3,031 posts, read 8,566,518 times
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How do I find out what the statute of limitations is? I'm not sure it's that old though.

What, exactly, do I ask the collection agency to do? Send me a paid in full letter w/ copies to the three credit reporting agencies to remove the debt completely? I don't want them to simply update it and mark it as "charge-off" or "paid". I've had similar conversations with some of them in the past and they try to run you around with lingo.
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Old 06-12-2008, 07:24 PM
 
430 posts, read 1,100,394 times
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Can I ask you a question to the poster. We are in the same boat somewhat and are filing Bankruptcy now or in the process. I hate this feeling that we have to do this. It was because we noth lost good paying jobs a few years ago and all of our bills were based on that income. We tried so hard to work several jobs ect and had to give it up a month or two. We knew we would loose r home and felt that if we didn't file bankruptcy we would never be able to move forward. My husband just recieved a really good job in another state and he took it. He will make a good wage but I;m afraid my husband will go to the nre jobs in the new state and nobody will rent to us because of the bankruptcy and all of that. I don't want to live in a bad area. I was wondering if you were able to rent after all you went through. We have a chance to start over , although not in are home state but if we can't find a home what good is it.
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Old 06-12-2008, 08:06 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,709,997 times
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when was it first reported to collections??

3 years from when it went to a collection company.

Tell them to send you a letter that states that they will delete from the credit bureaus when you make a payment. Also, remember that once you start negotiating, it can restart the 3yr SOL.



Quote:
Originally Posted by NChomesomeday View Post
How do I find out what the statute of limitations is? I'm not sure it's that old though.

What, exactly, do I ask the collection agency to do? Send me a paid in full letter w/ copies to the three credit reporting agencies to remove the debt completely? I don't want them to simply update it and mark it as "charge-off" or "paid". I've had similar conversations with some of them in the past and they try to run you around with lingo.
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Old 06-12-2008, 08:07 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,709,997 times
Reputation: 1008
FHA guidelines are

24months for chapter 7
12months for chapter 13

No credit lates in the last 12months

Quote:
Originally Posted by mimberly View Post
Can I ask you a question to the poster. We are in the same boat somewhat and are filing Bankruptcy now or in the process. I hate this feeling that we have to do this. It was because we noth lost good paying jobs a few years ago and all of our bills were based on that income. We tried so hard to work several jobs ect and had to give it up a month or two. We knew we would loose r home and felt that if we didn't file bankruptcy we would never be able to move forward. My husband just recieved a really good job in another state and he took it. He will make a good wage but I;m afraid my husband will go to the nre jobs in the new state and nobody will rent to us because of the bankruptcy and all of that. I don't want to live in a bad area. I was wondering if you were able to rent after all you went through. We have a chance to start over , although not in are home state but if we can't find a home what good is it.
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Old 06-12-2008, 08:20 PM
 
430 posts, read 1,100,394 times
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You aee talking about buying aren't you. We are just wanying to rent. Id it possible to do that after all of this and move forward or do people not want to rent to you , even if you have a good job. Having not rented in awhile I don't know. We are moving from Michigan as many are for the same issues and going to Virginia Lot and Lots of rentals.
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Old 06-12-2008, 08:38 PM
 
3,031 posts, read 8,566,518 times
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Hi renriq:

It's not yet 3 years old. So my choices are to get in writing a letter stating they will instruct the credit agencies to REMOVE this entire listing from our file (and of course, to follow up to see that it has been done) before I pay it.

Or not to pay it. Correct?
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Old 06-12-2008, 08:39 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,709,997 times
Reputation: 1008
Tell them to send you a payment letter that will state that they will remove it AFTER you pay.

They will not remove it before that....

It's called 'payment for deletion'

Quote:
Originally Posted by NChomesomeday View Post
Hi renriq:

It's not yet 3 years old. So my choices are to get in writing a letter stating they will instruct the credit agencies to REMOVE this entire listing from our file (and of course, to follow up to see that it has been done) before I pay it.

Or not to pay it. Correct?
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Old 06-12-2008, 09:10 PM
 
3,031 posts, read 8,566,518 times
Reputation: 840
Thank you! I always wonder what to say to these people. I want to clear up the debt but I don't want to jeopardize my credit rating.
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