Three National Credit Reporting Companies
2010
Paying Old Debt?
Hello, I have a question in regards to old debt. I am in the position to pay off an old debt and am wondering if this will affect my credit score for the worse. The debt is 2 years old. If paying off the bad dept will not affect my score negatively, should I ask for some kind of written statement to take the line item off of my report (if at all possible)?
Also, apart from the three national reporting agencies, how many more companies are managing my score. How many scores do I have (FICO…)??
I understand that it is not likely that paying old debt would be a bad thing. But I am concerned with anything I may not know. Such as re-aging debts that would figure badly.
If you are in position to pay your debt then you are in position to negotiate it with your creditor. 2 years old debt is too recent and it is within of SOL in any state of US and therefore you cannot just forgive it to your creditor.
Your best case scenario is settling the debt with the original creditor for 20% of its amount with removal of this account from your reports. There is an excellent article on this topic that could be found at http://www.creditinfocenter.com/debt/settle_debts.shtml
In regards to your score. The question is not how many scoreing systems is out there but which of those have any value to you. 90% of lenders in US use FICO score (developed and maintained by Fair Issac & Co) and thus that is the only score that should interest you. It’s calculated independently for each of your credit reports (TU, Experian, Equifax and Innovis) using slightely different algorthms adjusted to data storing model of each agency.
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