While browsing my free annual credit report, I discovered I owe a debt of 200 bucks, which has been sent to a collection agency. This is from several years ago, and I haven’t heard a word from the agency, and it hasn’t affected me wrt my credit cards, etc.
I contacted the company involved and will pay the bill this week.
My question is once I pay this bill, what do I have to do to remove this debt from the records of the “Big 3” credit reporting agencies. I have heard horror stories about trying to get such things removed from credit reports.
If it is a valid debt, the credit reporting agencies do not have to remove it from your credit report. You can ask for a pay for delete but the creditor does not have to do it. If the debt is more than 4 years old in New Mexico, the statute of limitations has tolled and you do not legally owe on the debt anymore. It will stay on your CR for at least 7 years from charge off though.
Wait 3 more years. You really blew it (if you paid it already). In many cases, the clock starts all over, with a big, ugly, **paid collection ** (just about as bad as an unpaid one) and all you get out of the deal is a wallet $200 lighter.
My advice? If the rest of your credit is decent, shine this debt and let it slip off in another 3 years. Why spend $200 bucks to dent your credit for the next (possibly) 7 years?
(You know, I was going to start a rant in the Pit about the “Credit Industry” and the giant scam they are perpetuating on the public, but am too lazy and Frankly, don’t give a damn!)
No no no! Do not pay that bill! Never pay off an old debt without getting them to promise *in writing *that they will take it off all 3 credit reports.
In fact, a really old bill, one that is about to drop off anyway, may come back to haunt you for a longer time *because *you pay it off. It’s not supposed to work that way, but it too often does.
I usually suggest disputing any old “DeRogs”. But, paying it off- as long as they agree to remove it- is not a bad idea either.
