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Hello. I'm new here. Looks like a great place.

I'm 37 and pretty much ignored my credit history from the time I got it in my early twenties to my early thirties. I got some bad advise from my father and pretty much just ignored a lot of my bills through my twenties. In a way the system worked because I never qualified for anything higher than a $500 Best Buy card, so I never managed to get myself into tens of thousands of dollars of debt like some people do. I never financed a car, never bought a house or took out any student loans. Most of my debt came from some medical bills, a couple small credit cards $300-$500 (literally the only two credit cards I ever had before) and nonpayment of cable or phone bills.

Since my early-mid thirties I've been more responsible. I pay most of my bills on time. I've been at my job for 10 years and I was pre-approved for a Capital One Platinum card back in February of this year, which I got with a $300 limit. It's my only card. I've paid that on time every month since getting it. Unfortunately I didn't realize that I shouldn't keep a balance on it until recently, so I just paid it off last week and will keep it under 30% usage and pay that off every month from here on out.

I've been on CreditKarma for a year or so now and my TU and EQ score are both currently 583 according to that site.

I have five bad marks on my report. One I paid off this past December and shows as closed, another I just paid off today. That leaves me with two others with last reported activity in December 2014. One for $398 and the other for $123. I should be able to pay both of those off in the next couple of months.

 

Other than that, i have a released lien on my report. It's stated as being from 2011 on CreditKarma, but the court told me it was from 2009. It shows as released on my CK TU report but just shows ---- on my CK EQ report. I'm hoping it drops off my credit report at some point soon. Not sure how that works.

My goals are to buy a house and a car soon. I've been living in a rental house for the last four years and my car is 18 years old with 265K miles on it. Not sure it will last me another winter. So I need to get my credit up to where I can do those two things. I'm looking into houses in the $60k-100K range.

It's hard for me to save money because I feel like I'm living paycheck to paycheck. I make $40K a year, but my net is about $18K because of taxes, child support and insurance. So I'm living off $1500 net per month. My rent alone is $690 and my other highest bill is my car insurance a $135 a month (no fault - not full coverage). I managed to work my phone bill down to $35 a month, my cable internet down to $35 a month. Water/elec/gas cost me about $200 or so a month combined, but what really kills me is food. It feels like about $100 a week. I should probably track it better. It also doesn't help that my girlfriend lives with me and can't seem to keep a job, so I can't rely on any assistance from her.

On many occasions I've had to pull money from my IRA to pay bills, which over time has brought my IRA savings down to $1500.
I also have about $500 I owe on my federal taxes still.

I also just found out there is an old debt (my old Best Buy card from early 2000s) that got picked up my a collection agency and they just garnished $600 from my checking out last week. Draining my entire account, requiring me to pull $600 from my IRA to pay bills. Apparently they served me back in 2007 and are just now (nine years later) garnishing my state taxes and my recently bank account) so that was a bit of surprise. I guess I still own them another $900, so now I live in suspense of when my bank account will be garnished again, because I tried contacting them after that and couldn't get through. That wasn't even on my credit report, so I had no idea it still existed.

Basically I'm struggling to stay afloat while paying off my old debt (getting close) and advance forward in life and improve my credit.

Any advice you guys can give me would be great. Sorry for my book long first post.

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Personally I wouldn't worry about paying old debt off at this point. I would read lots and start the psychdoc transcripts for invaluable information. Just my pennies for thought from another newbie.

 

☁Cloudsoflove☁

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Hello. I'm new here. Looks like a great place.

 

I'm 37 and pretty much ignored my credit history from the time I got it in my early twenties to my early thirties. I got some bad advise from my father and pretty much just ignored a lot of my bills through my twenties. In a way the system worked because I never qualified for anything higher than a $500 Best Buy card, so I never managed to get myself into tens of thousands of dollars of debt like some people do. I never financed a car, never bought a house or took out any student loans. Most of my debt came from some medical bills, a couple small credit cards $300-$500 (literally the only two credit cards I ever had before) and nonpayment of cable or phone bills.

 

Since my early-mid thirties I've been more responsible. I pay most of my bills on time. I've been at my job for 10 years and I was pre-approved for a Capital One Platinum card back in February of this year, which I got with a $300 limit. It's my only card. I've paid that on time every month since getting it. Unfortunately I didn't realize that I shouldn't keep a balance on it until recently, so I just paid it off last week and will keep it under 30% usage and pay that off every month from here on out.

 

I've been on CreditKarma for a year or so now and my TU and EQ score are both currently 583 according to that site.

 

I have five bad marks on my report. One I paid off this past December and shows as closed, another I just paid off today. That leaves me with two others with last reported activity in December 2014. One for $398 and the other for $123. I should be able to pay both of those off in the next couple of months.

 

Other than that, i have a released lien on my report. It's stated as being from 2011 on CreditKarma, but the court told me it was from 2009. It shows as released on my CK TU report but just shows ---- on my CK EQ report. I'm hoping it drops off my credit report at some point soon. Not sure how that works.

 

My goals are to buy a house and a car soon. I've been living in a rental house for the last four years and my car is 18 years old with 265K miles on it. Not sure it will last me another winter. So I need to get my credit up to where I can do those two things. I'm looking into houses in the $60k-100K range.

 

It's hard for me to save money because I feel like I'm living paycheck to paycheck. I make $40K a year, but my net is about $18K because of taxes, child support and insurance. So I'm living off $1500 net per month. My rent alone is $690 and my other highest bill is my car insurance a $135 a month (no fault - not full coverage). I managed to work my phone bill down to $35 a month, my cable internet down to $35 a month. Water/elec/gas cost me about $200 or so a month combined, but what really kills me is food. It feels like about $100 a week. I should probably track it better. It also doesn't help that my girlfriend lives with me and can't seem to keep a job, so I can't rely on any assistance from her.

 

On many occasions I've had to pull money from my IRA to pay bills, which over time has brought my IRA savings down to $1500.

I also have about $500 I owe on my federal taxes still.

 

I also just found out there is an old debt (my old Best Buy card from early 2000s) that got picked up my a collection agency and they just garnished $600 from my checking out last week. Draining my entire account, requiring me to pull $600 from my IRA to pay bills. Apparently they served me back in 2007 and are just now (nine years later) garnishing my state taxes and my recently bank account) so that was a bit of surprise. I guess I still own them another $900, so now I live in suspense of when my bank account will be garnished again, because I tried contacting them after that and couldn't get through. That wasn't even on my credit report, so I had no idea it still existed.

 

Basically I'm struggling to stay afloat while paying off my old debt (getting close) and advance forward in life and improve my credit.

 

Any advice you guys can give me would be great. Sorry for my book long first post.

Welcome to CB!!

 

You're in the right place. It looks like your thread needs a bump here so I am going to give you a little advice and others will chime in.

When beginning, many people think that paying off old collections will help, Unfortunately it doesn't work that way.

Please do not rely on credit karma for anything. Those are fake scores and do not correspond to anything.

Make sure to get a copy of all 3 of your credit reports. You can order them by calling each cra:

 

EQ: 800-997-2493

EX: 888-397-3742

TU: 800-888-4213

 

start here: https://creditboards...owtopic=296328

Psychdoc: https://creditboards.com/forums/index.php?showtopic=142032

 

Best Buy collecting on a 16 year old debt???! Are you sure? When your bank account was drained, did your bank notify you? Do you have documentation?

 

Edited to add link

Edited by Misty120

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You mention that you are living paycheck to paycheck, and that is what you need to focus on more than credit. Financial stability is the key to good credit long term.

 

https://creditboards.com/forums/index.php?showtopic=542925

 

What I mean isn't that you need to be rich, but that you need to live below your means and have a savings plan. Good credit also saves you money on big purchases like a home or a car.

 

If you don't already have a budget, I would suggest working on one to see where you can cut expenses and also what you might be able to do to increase income whether it be going for a promotion, a new job or starting a side business. A combination of the two will get you headed the right direction.

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Hello. I'm new here. Looks like a great place.

 

I'm 37 and pretty much ignored my credit history from the time I got it in my early twenties to my early thirties. I got some bad advise from my father and pretty much just ignored a lot of my bills through my twenties. In a way the system worked because I never qualified for anything higher than a $500 Best Buy card, so I never managed to get myself into tens of thousands of dollars of debt like some people do. I never financed a car, never bought a house or took out any student loans. Most of my debt came from some medical bills, a couple small credit cards $300-$500 (literally the only two credit cards I ever had before) and nonpayment of cable or phone bills.

 

Since my early-mid thirties I've been more responsible. I pay most of my bills on time. I've been at my job for 10 years and I was pre-approved for a Capital One Platinum card back in February of this year, which I got with a $300 limit. It's my only card. I've paid that on time every month since getting it. Unfortunately I didn't realize that I shouldn't keep a balance on it until recently, so I just paid it off last week and will keep it under 30% usage and pay that off every month from here on out.

 

I've been on CreditKarma for a year or so now and my TU and EQ score are both currently 583 according to that site.

 

I have five bad marks on my report. One I paid off this past December and shows as closed, another I just paid off today. That leaves me with two others with last reported activity in December 2014. One for $398 and the other for $123. I should be able to pay both of those off in the next couple of months.

 

Other than that, i have a released lien on my report. It's stated as being from 2011 on CreditKarma, but the court told me it was from 2009. It shows as released on my CK TU report but just shows ---- on my CK EQ report. I'm hoping it drops off my credit report at some point soon. Not sure how that works.

 

My goals are to buy a house and a car soon. I've been living in a rental house for the last four years and my car is 18 years old with 265K miles on it. Not sure it will last me another winter. So I need to get my credit up to where I can do those two things. I'm looking into houses in the $60k-100K range.

 

It's hard for me to save money because I feel like I'm living paycheck to paycheck. I make $40K a year, but my net is about $18K because of taxes, child support and insurance. So I'm living off $1500 net per month. My rent alone is $690 and my other highest bill is my car insurance a $135 a month (no fault - not full coverage). I managed to work my phone bill down to $35 a month, my cable internet down to $35 a month. Water/elec/gas cost me about $200 or so a month combined, but what really kills me is food. It feels like about $100 a week. I should probably track it better. It also doesn't help that my girlfriend lives with me and can't seem to keep a job, so I can't rely on any assistance from her.

 

On many occasions I've had to pull money from my IRA to pay bills, which over time has brought my IRA savings down to $1500.

I also have about $500 I owe on my federal taxes still.

 

I also just found out there is an old debt (my old Best Buy card from early 2000s) that got picked up my a collection agency and they just garnished $600 from my checking out last week. Draining my entire account, requiring me to pull $600 from my IRA to pay bills. Apparently they served me back in 2007 and are just now (nine years later) garnishing my state taxes and my recently bank account) so that was a bit of surprise. I guess I still own them another $900, so now I live in suspense of when my bank account will be garnished again, because I tried contacting them after that and couldn't get through. That wasn't even on my credit report, so I had no idea it still existed.

 

Basically I'm struggling to stay afloat while paying off my old debt (getting close) and advance forward in life and improve my credit.

 

Any advice you guys can give me would be great. Sorry for my book long first post.

Welcome to CB!!

 

You're in the right place. It looks like your thread needs a bump here so I am going to give you a little advice and others will chime in.

When beginning, many people think that paying off old collections will help, Unfortunately it doesn't work that way.

Please do not rely on credit karma for anything. Those are fake scores and do not correspond to anything.

Make sure to get a copy of all 3 of your credit reports. You can order them by calling each cra:

 

EQ: 800-997-2493

EX: 888-397-3742

TU: 800-888-4213

 

start here: https://creditboards...owtopic=296328

Psychdoc: https://creditboards.com/forums/index.php?showtopic=142032

 

Best Buy collecting on a 16 year old debt???! Are you sure? When your bank account was drained, did your bank notify you? Do you have documentation?

 

Edited to add link

 

 

Thank you. I've gotten my credit reports before through freeannualcreditreport or whatever that website is. But they don't tell you your score and it's only once a year. So is there a way I can get my real score on a regular basis like I do once a week through creditkarma?

 

Personally I wouldn't worry about paying old debt off at this point. I would read lots and start the psychdoc transcripts for invaluable information. Just my pennies for thought from another newbie.

 

☁Cloudsoflove☁

 

Thank you. I didn't see those. I'm already on the second one.

 

You mention that you are living paycheck to paycheck, and that is what you need to focus on more than credit. Financial stability is the key to good credit long term.

 

https://creditboards.com/forums/index.php?showtopic=542925

 

What I mean isn't that you need to be rich, but that you need to live below your means and have a savings plan. Good credit also saves you money on big purchases like a home or a car.

 

If you don't already have a budget, I would suggest working on one to see where you can cut expenses and also what you might be able to do to increase income whether it be going for a promotion, a new job or starting a side business. A combination of the two will get you headed the right direction.

To be honest, I'm probably being a bit overdramatic when I say that only because it can seems overwhelming to me. I'm not living comfortably to the point where I can throw a $100 into my saving account every paycheck and be sure I won't need to spend it on something soon. It's also true that there are months where I've had to pull money from my IRA to make bills. Usually it's because I didn't budget right somewhere else and bought something or something unexpected popped up (like a car repair). I do keep a budget for my monthly bills, but I've never been consistent about the rest of my money, including how much I'm spending on food. It probably doesn't help that I'm not doing biweekly grocery shopping but instead popping into the store 3-4 times a week and dropping $10-40 each time. or that I often go and grab lunch during weekdays rather than bring lunch. Something I'm currently changing. But I have cut expenses in other places recently like my phone bill and internet bill.

 

All of that said, one of the reasons I want to buy a house is to get into something where my mortgage is cheaper than my rent. Something that allows me to make up some difference, that I can maybe even apply to a newer car so I don't have to worry about that as much. Which is why I'm looking for advice on how to increase my credit score.

I've been at my job for ten years and I enjoy where I work, but the likelihood I'll get a significant raise is pretty low. Nor are there a lot of places in my field locally that hire full time with benefits for what I do. I have to stay in this area because of my son. At least for another 6 years. But I do get some side work. Which is good, it's just only every a few times per year. So it helps, but it's not consistent, more like a bonus.

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Hello. I'm new here. Looks like a great place.

 

I'm 37 and pretty much ignored my credit history from the time I got it in my early twenties to my early thirties. I got some bad advise from my father and pretty much just ignored a lot of my bills through my twenties. In a way the system worked because I never qualified for anything higher than a $500 Best Buy card, so I never managed to get myself into tens of thousands of dollars of debt like some people do. I never financed a car, never bought a house or took out any student loans. Most of my debt came from some medical bills, a couple small credit cards $300-$500 (literally the only two credit cards I ever had before) and nonpayment of cable or phone bills.

 

Since my early-mid thirties I've been more responsible. I pay most of my bills on time. I've been at my job for 10 years and I was pre-approved for a Capital One Platinum card back in February of this year, which I got with a $300 limit. It's my only card. I've paid that on time every month since getting it. Unfortunately I didn't realize that I shouldn't keep a balance on it until recently, so I just paid it off last week and will keep it under 30% usage and pay that off every month from here on out.

 

I've been on CreditKarma for a year or so now and my TU and EQ score are both currently 583 according to that site.

 

I have five bad marks on my report. One I paid off this past December and shows as closed, another I just paid off today. That leaves me with two others with last reported activity in December 2014. One for $398 and the other for $123. I should be able to pay both of those off in the next couple of months.

 

Other than that, i have a released lien on my report. It's stated as being from 2011 on CreditKarma, but the court told me it was from 2009. It shows as released on my CK TU report but just shows ---- on my CK EQ report. I'm hoping it drops off my credit report at some point soon. Not sure how that works.

 

My goals are to buy a house and a car soon. I've been living in a rental house for the last four years and my car is 18 years old with 265K miles on it. Not sure it will last me another winter. So I need to get my credit up to where I can do those two things. I'm looking into houses in the $60k-100K range.

 

It's hard for me to save money because I feel like I'm living paycheck to paycheck. I make $40K a year, but my net is about $18K because of taxes, child support and insurance. So I'm living off $1500 net per month. My rent alone is $690 and my other highest bill is my car insurance a $135 a month (no fault - not full coverage). I managed to work my phone bill down to $35 a month, my cable internet down to $35 a month. Water/elec/gas cost me about $200 or so a month combined, but what really kills me is food. It feels like about $100 a week. I should probably track it better. It also doesn't help that my girlfriend lives with me and can't seem to keep a job, so I can't rely on any assistance from her.

 

On many occasions I've had to pull money from my IRA to pay bills, which over time has brought my IRA savings down to $1500.

I also have about $500 I owe on my federal taxes still.

 

I also just found out there is an old debt (my old Best Buy card from early 2000s) that got picked up my a collection agency and they just garnished $600 from my checking out last week. Draining my entire account, requiring me to pull $600 from my IRA to pay bills. Apparently they served me back in 2007 and are just now (nine years later) garnishing my state taxes and my recently bank account) so that was a bit of surprise. I guess I still own them another $900, so now I live in suspense of when my bank account will be garnished again, because I tried contacting them after that and couldn't get through. That wasn't even on my credit report, so I had no idea it still existed.

 

Basically I'm struggling to stay afloat while paying off my old debt (getting close) and advance forward in life and improve my credit.

 

Any advice you guys can give me would be great. Sorry for my book long first post.

Welcome to CB!!

 

You're in the right place. It looks like your thread needs a bump here so I am going to give you a little advice and others will chime in.

When beginning, many people think that paying off old collections will help, Unfortunately it doesn't work that way.

Please do not rely on credit karma for anything. Those are fake scores and do not correspond to anything.

Make sure to get a copy of all 3 of your credit reports. You can order them by calling each cra:

 

EQ: 800-997-2493

EX: 888-397-3742

TU: 800-888-4213

 

start here: https://creditboards...owtopic=296328

Psychdoc: https://creditboards.com/forums/index.php?showtopic=142032

 

Best Buy collecting on a 16 year old debt???! Are you sure? When your bank account was drained, did your bank notify you? Do you have documentation?

 

Edited to add link

 

 

Thank you. I've gotten my credit reports before through freeannualcreditreport or whatever that website is. But they don't tell you your score and it's only once a year. So is there a way I can get my real score on a regular basis like I do once a week through creditkarma?

 

Personally I wouldn't worry about paying old debt off at this point. I would read lots and start the psychdoc transcripts for invaluable information. Just my pennies for thought from another newbie.

 

☁Cloudsoflove☁

 

Thank you. I didn't see those. I'm already on the second one.

 

You mention that you are living paycheck to paycheck, and that is what you need to focus on more than credit. Financial stability is the key to good credit long term.

 

https://creditboards.com/forums/index.php?showtopic=542925

 

What I mean isn't that you need to be rich, but that you need to live below your means and have a savings plan. Good credit also saves you money on big purchases like a home or a car.

 

If you don't already have a budget, I would suggest working on one to see where you can cut expenses and also what you might be able to do to increase income whether it be going for a promotion, a new job or starting a side business. A combination of the two will get you headed the right direction.

To be honest, I'm probably being a bit overdramatic when I say that only because it can seems overwhelming to me. I'm not living comfortably to the point where I can throw a $100 into my saving account every paycheck and be sure I won't need to spend it on something soon. It's also true that there are months where I've had to pull money from my IRA to make bills. Usually it's because I didn't budget right somewhere else and bought something or something unexpected popped up (like a car repair). I do keep a budget for my monthly bills, but I've never been consistent about the rest of my money, including how much I'm spending on food. It probably doesn't help that I'm not doing biweekly grocery shopping but instead popping into the store 3-4 times a week and dropping $10-40 each time. or that I often go and grab lunch during weekdays rather than bring lunch. Something I'm currently changing. But I have cut expenses in other places recently like my phone bill and internet bill.

 

All of that said, one of the reasons I want to buy a house is to get into something where my mortgage is cheaper than my rent. Something that allows me to make up some difference, that I can maybe even apply to a newer car so I don't have to worry about that as much. Which is why I'm looking for advice on how to increase my credit score.

I've been at my job for ten years and I enjoy where I work, but the likelihood I'll get a significant raise is pretty low. Nor are there a lot of places in my field locally that hire full time with benefits for what I do. I have to stay in this area because of my son. At least for another 6 years. But I do get some side work. Which is good, it's just only every a few times per year. So it helps, but it's not consistent, more like a bonus.

 

 

1. Get copies of your paper reports.

2. Join NFCU and open a secured CC. Strategy explained HERE.

3. Read How to Avoid Toy Card Hell.

4. Do NOT pay off anything else right now.

5. List your negatives including DOFD and if a collection, the name of the original creditor. Include as much detail as possible without sharing any personal information.

 

Keep in mind that while a payment on a house can be less than renting, you need to be prepared for any expenses that may arise. What if the AC breaks your first month in the house and you need to replace it? What about anything that causes you to even just pay the deductible on your homeowner's insurance policy? You also will need to pay for inspections and other things and come up with down payment money and closing costs. Getting on a savings plan right now while you start rebuilding your credit will help get you on the path to home ownership.

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1. Get copies of your paper reports.

2. Join NFCU and open a secured CC. Strategy explained HERE.

3. Read How to Avoid Toy Card Hell.

4. Do NOT pay off anything else right now.

5. List your negatives including DOFD and if a collection, the name of the original creditor. Include as much detail as possible without sharing any personal information.

 

Keep in mind that while a payment on a house can be less than renting, you need to be prepared for any expenses that may arise. What if the AC breaks your first month in the house and you need to replace it? What about anything that causes you to even just pay the deductible on your homeowner's insurance policy? You also will need to pay for inspections and other things and come up with down payment money and closing costs. Getting on a savings plan right now while you start rebuilding your credit will help get you on the path to home ownership.

 

Thanks. I don't really understand the logic though.

1. Why would I join a credit union when I already have a bank account?

 

2. Why would I apply for a secured card when I already have an unsecured card? Seems like instead if I got another card (should I really?) then it should be another unsecured card with perhaps a higher limit. Is there some benefit to the unsecured card I'm not aware of?

 

3. Getting my paper reports is great and I will pull them next week, but if credit karma is not giving me my real score, how do I get that? Is there any way to get it on a weekly/monthly basis so I can keep track of how I'm doing?

 

 

 

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1. Because you need to be a member of NFCU to apply for their credit products (see #2). There's nothing wrong with having more than one checking account anyway.

 

2. You have a single Cap1 CC with a $300 limit. If you don't qualify for an unsecured card with NFCU, a secured card will eventually graduate to unsecured. Read the link I posted with the NFCU strategy. A $500 secured card (if you're not approved for unsecured) could become a $25K card within a year.

 

3. Credit Karma does not give you real scores or reports. You can use credit monitoring services to keep track of disputes, but your only true credit reports are paper copies directly from the CRAs. Don't request them online and print them. You need to request paper copies by mail.

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1. Because you want options. Even if your bank is great it is always good to have additional resources.

 

2. Don't think just because you have an unsecured card taking a secured card is a step back. They can be a great way to get your foot in the door with other establishments. The specific card suggested to you will unsecured and grow faster than the unsecured card you have now actually spending up your build process.

 

3. Check the free FICO score thread. CCT is good for their trail, but expensive after that. Unless you are anal, there is no need for a daily or weekly update unless you are in the process of applying for something.

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Can someone explain the logic of why not pay off old debts. my lack of understanding is if you dont pay them off what do you do with them?

 

 

That is simply the logic from people who don't take accountability for their actions.

 

Or maybe better said that as a debt ages the benefit YOU get from paying it lessens. A debt that has exceeded your state's statue of limitations prohibits the debt collector from having a legal recourse to collect from you. A debt that exceeds 7 1/2 years will no longer be reported on your credit reports. Since PFD and GW don't have a high success rate, many prefer to let the old debt age off.

 

Since many companies will even do business with you in the future after you have burned them, the only benefit you may get from paying a 6 year old debt is the knowledge you did the right thing.

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Can someone explain the logic of why not pay off old debts. my lack of understanding is if you dont pay them off what do you do with them?

Cliff notes, there's something called a statute of limitations. A statute of limitations is a law that allows valid debts to only be legally owed for a set statutory time period. When that time period is up, the debts are no longer legally collectible. Secondly, any payment made on a debt resets the statute of limitations, thereby increasing the time the debt will stay on your reports and the time the creditor has to collect. Finally, a collection is a collection, whether it's paid or not. Paying a collection may have some benefit in a manual credit review, but will have negligible effect upon a credit score. Depending up on when the account was first delinquent, it may very well be against your interests to pay the debt, especially if it's nearing the time limit for which the debt may be reported. And finally, if you pay old debts you will most likely NOT be benefiting the original creditor, because in most cases they will have already sold the debt to junk debt buyers and written the account off as a loss. They have no stake in your payment or non payment of the old debt.

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Can someone explain the logic of why not pay off old debts. my lack of understanding is if you dont pay them off what do you do with them?

 

That is simply the logic from people who don't take accountability for their actions.

 

Or maybe better said that as a debt ages the benefit YOU get from paying it lessens. A debt that has exceeded your state's statue of limitations prohibits the debt collector from having a legal recourse to collect from you. A debt that exceeds 7 1/2 years will no longer be reported on your credit reports. Since PFD and GW don't have a high success rate, many prefer to let the old debt age off.

 

Since many companies will even do business with you in the future after you have burned them, the only benefit you may get from paying a 6 year old debt is the knowledge you did the right thing.

:warning::stop:

 

Wrong.

 

Before paying anyone, you need to:

 

Make sure whoever is collecting legally owns the debt.

 

If it's a collection agency, try to pay the OC to have it removed.

 

Use leverage to get the item deleted from reports.

 

Etc.......

 

There are lots of reasons not to blindly pay negative accounts and you should not accuse people who don't pay them of being deadbeats.

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Can someone explain the logic of why not pay off old debts. my lack of understanding is if you dont pay them off what do you do with them?

 

That is simply the logic from people who don't take accountability for their actions.

 

Or maybe better said that as a debt ages the benefit YOU get from paying it lessens. A debt that has exceeded your state's statue of limitations prohibits the debt collector from having a legal recourse to collect from you. A debt that exceeds 7 1/2 years will no longer be reported on your credit reports. Since PFD and GW don't have a high success rate, many prefer to let the old debt age off.

 

Since many companies will even do business with you in the future after you have burned them, the only benefit you may get from paying a 6 year old debt is the knowledge you did the right thing.

:warning::stop:

 

Wrong.

 

Before paying anyone, you need to:

 

Make sure whoever is collecting legally owns the debt.

 

If it's a collection agency, try to pay the OC to have it removed.

 

Use leverage to get the item deleted from reports.

 

Etc.......

 

There are lots of reasons not to blindly pay negative accounts and you should not accuse people who don't pay them of being deadbeats.

 

 

 

I can understand this but removing it from your credit report does increase you limit(like a PFD) ?

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I don'

 

 

 

Can someone explain the logic of why not pay off old debts. my lack of understanding is if you dont pay them off what do you do with them?



That is simply the logic from people who don't take accountability for their actions.

Or maybe better said that as a debt ages the benefit YOU get from paying it lessens. A debt that has exceeded your state's statue of limitations prohibits the debt collector from having a legal recourse to collect from you. A debt that exceeds 7 1/2 years will no longer be reported on your credit reports. Since PFD and GW don't have a high success rate, many prefer to let the old debt age off.

Since many companies will even do business with you in the future after you have burned them, the only benefit you may get from paying a 6 year old debt is the knowledge you did the right thing.

:warning::stop:

Wrong.

Before paying anyone, you need to:

Make sure whoever is collecting legally owns the debt.

If it's a collection agency, try to pay the OC to have it removed.

Use leverage to get the item deleted from reports.

Etc.......

There are lots of reasons not to blindly pay negative accounts and you should not accuse people who don't pay them of being deadbeats.

 

 

You're twisting my words...

 

He did not ask "what should you do before paying an outstanding debt?" he asked the logic behind "why not pay off old debts?"

 

All of your examples are correct, but are for people who are planning to make a payment so it doesn't even answer his question.

 

Furthermore, I never said to blindly pay anyone. If at the end of the day you choose not to pay a valid debt because it doesn't benefit you, then you are not taking responsibility for your actions. If you want to call that person a deadbeat, those are your words not mine.

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Not paying does not mean not taking responsibility.

 

For example, paying a JDB for a charged off credit card from 5 years ago doesn't make whole the CC issuer. They gain nothing from payment at that point.

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Removing it from your report increases your score. Paying it without removing it rarely helps.

 

It may not move your score for FICO 8, but it does factor into FICO 9 even if the model isn't widely used. I also don't know many mortgage lenders that will approve you without settling charge offs. Saying it rarely helps seems like a bit of a stretch.

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Removing it from your report increases your score. Paying it without removing it rarely helps.

It may not move your score for FICO 8, but it does factor into FICO 9 even if the model isn't widely used. I also don't know many mortgage lenders that will approve you without settling charge offs. Saying it rarely helps seems like a bit of a stretch.

Nobody uses FICO 9 that I know of.

 

You don't need to pay minor collections for FHA.

 

My comment was about credit scores BTW, and in that way it is accurate. I should have been more clear.

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Can someone explain the logic of why not pay off old debts. my lack of understanding is if you dont pay them off what do you do with them?

 

 

That is simply the logic from people who don't take accountability for their actions.

 

Or maybe better said that as a debt ages the benefit YOU get from paying it lessens. A debt that has exceeded your state's statue of limitations prohibits the debt collector from having a legal recourse to collect from you. A debt that exceeds 7 1/2 years will no longer be reported on your credit reports. Since PFD and GW don't have a high success rate, many prefer to let the old debt age off.

 

Since many companies will even do business with you in the future after you have burned them, the only benefit you may get from paying a 6 year old debt is the knowledge you did the right thing.

 

 

There are very FEW states that prohibits lawsuits on Time barred debts - MOST DO NOT

 

The JDB's can file lawsuits - and obtain a judgement if you fail to file an answer to the complaint in court, utilizing the Statute of limitation defense.

 

the Statute of Limitations is an affirmative defense you have to raise - lay before the court

 

if you don't use it, you Lose it.

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