GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Tue Sep 02, 2014 10:02 am




Post new topic Reply to topic  [ 5 posts ] 
Author Message
 Post subject: Pay off delinquent account on credit report?
PostPosted: Wed Oct 03, 2012 6:36 am 

Joined: Wed Sep 26, 2012 2:34 pm
Posts: 2
So, 6 years ago I lived in a apartment complex near campus. Long story short, the apartment complex pulls this major scam when everyone moves out and I get stuck with a $177 bill on my credit report. A while ago I looked into getting it removed but I never really got around to doing it. Now, I am shopping for mortgages and I am wondering if it would make sense to pay it. Would it give me a solid bump in credit score? The rest of my bills get paid in full every month and I have never missed a payment. Credit Karma shows 750, but BOA said it was between 690 and 740. Would it help?


Top
Offline Profile E-mail   
 Post subject: Re: Pay off delinquent account on credit report?
PostPosted: Wed Oct 03, 2012 6:46 am 
Moderator

Joined: Wed Sep 23, 2009 9:01 am
Posts: 5357
It probably would help. But the mark is still going to be there. You will be asked to explain it. You better have a better explanation than you posted here. If it was a scam why did you not report it to the police? It sounds more like a dispute/misunderstanding among roommates that you did not handle responsibly. If so, admit it, it happens. But blaming others is far less likely to get you a mortgage than accepting responsibility and showing you have changed. You might need to wait several months of a year until after you paid it off before anyone will lend you money.


Top
Offline Profile E-mail   
 Post subject: Re: Pay off delinquent account on credit report?
PostPosted: Wed Oct 03, 2012 7:19 am 

Joined: Fri May 04, 2012 2:23 pm
Posts: 810
I would challenge it at the credit bureaus. If that doesn't work, I would then contact them, offer them 25% of the original amount and you will receive a letter in writing that they will remove the negative account or any future negative reporting from all three of the credit bureaus. once you receive the letter, you will pay them.

any money exchanged should be for removing the negative account. I would first route through the bureaus. It can be a slow process, so be warned.

_________________
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."


Top
Offline Profile E-mail   
 Post subject: Re: Pay off delinquent account on credit report?
PostPosted: Wed Oct 03, 2012 7:34 am 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 262
Location: Cincinnati, OH
If you are applying for a mortgage in the near future, DO NOT DISPUTE the charge.

Fannie Mae, Freddie Mac, and FHA all require additional documentation on disputed credit accounts, up to having the dispute removed. This can cause massive delays in getting your mortgage closed.

How is the account reporting on your credit? Generally a credit report will show you 3 dates:

The date the account was opened
The date that the account was last active
The date the account last reported to the credit bureaus

If the account in question has been sitting dormant for a number of years (date last active and date last reported) then I would leave it alone. Paying off the debt could cause those dates to be updated to this month, thus making it fresher and potentially causing a ding to your credit score.

Generally speaking, most lenders won't bat an eye at a single collection of $177. A few may ask for a letter of explanation, but considering that it is 6+ years old, I doubt it.

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


Top
Offline Profile E-mail   
 Post subject: Re: Pay off delinquent account on credit report?
PostPosted: Wed Oct 03, 2012 1:05 pm 

Joined: Mon Nov 01, 2010 5:15 pm
Posts: 1152
TCstr8 wrote:
If the account in question has been sitting dormant for a number of years (date last active and date last reported) then I would leave it alone. Paying off the debt could cause those dates to be updated to this month, thus making it fresher and potentially causing a ding to your credit score.

I can agree with this especially since you're applying for a mortgage. If you pay it, it will show as a paid debt but it would recycle the DLA.

Quote:
Generally speaking, most lenders won't bat an eye at a single collection of $177. A few may ask for a letter of explanation, but considering that it is 6+ years old, I doubt it.

I would be ready to explain it nonetheless.


Top
Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 5 posts ]  Moderators: bpgui, JerichoHill


Who is online

Users browsing this forum: Google [Bot], Google Adsense [Bot], VinTek and 15 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki