Credit card from when I was 18?

Question

Ok, so I had this credit card when I was 18, I am now 24. I figured that I would pay on the debts that I have now since that credit card negative history would be falling off in a couple of years anyway so it would behoove me to pay on the debts that actually help my credit.

So out of the blue I get a phone call from them and they say that they are going to put a judgement on my file. Which of course I don't want! The balance is like 2100 dollars. Settle for 1675. I know this is shady business but h**l this is the world we live in so if they were to attach a judgement would that stay on for 7 years from now even though I haven't made a payment to these people since 03? so technically it should drop off my report in 2010 instead of 2015. Either way I'm gonna set up something with them because a judgement hurts your file so bad, but just in theory when does all that fall off your report?

Answer 1

Check the Statute of Limitations for debt collection in your state.  It may be that they are just threatening you, but have no legal recourse.  If that is the case, don't pay them anything.  They can't touch you.

If the debt is still within the SOL for your state, try to work out a settlement with them where they will accept payment but in return won't report to the bureaus.

On a credit report, and for credit rating purposes, an old debt is bad.  It doesn't matter if it was paid off or not.  You have nothing to gain by paying off the debt if your only motive is to improve your credit.

Answer 2

It can drop off and then a year or two later show up again if they sell the debt to another company (happened to me)

You need to pay this bill.....

Answer 3

Derogatory items age off your credit file 7-1/2 years from the date of first deficiency.  This is per the FCRA and nothing restarts this clock.

The Statute of Limitations (SOL), the timeframe to bring lawsuit, starts from the last activity or last payment.  Check here for the SOL in your state:  http://www.bcsalliance.com/statute_of_li...

Before they can put a judgment on your credit, they have to sue you.  If the debt is beyond the SOL, you can use this as an affirmative defense in court.  If you do get a summons be sure to respond and show up in court.  If you don't show, they get a default judgment.

If this debt is beyond the SOL, send the collection agency a certified, return receipt letter telling them to cease and desist all contact as the debt is beyond the SOL.  They may sell the debt to another collection agency but all you do is send another cease and desist.

If the debt is NOT beyond the SOL, negotiate a settlement.  I suggest offering 10% of the original debt to start and not going more than 25%.   Lump sum gets the best deals.   Any payment plan has to be very short -- less than 4 months.

Be sure to get any settlement agreement in writing before you pay a penny.  Keep that agreement and your payment proof, forever.  Do not give the collector direct access to your bank account.

Answer 4

judgement stays on for 10 years.  and it's the first step to garnishment.  they can file to start garnishing your wages; the judgements give them permission to harassas you for a couple extra years, or the option to file to garnish.  25% of your paycheck.  settling will show up on your report as a settlement, so the balance would still be there for 7 years.  that is not good.  i'd call them and try to set up a payment plan.  all they want is their money.