If you pay off old debt on your credit report .......??

Question

does it affect your score in any positive way at all?

Answer 1

You have to make pay-for-delete deal where the creditor/collection agency gives you in writing that they will remove derogatory accounts  from your credit reports when you pay them. Otherwise the derogatory accounts will be reported as paid however they will remain your credit reports lowering your credit score.

Answer 2

If the old debt is still within the reporting time limits any payment will not reage the account to allow it to report for a longer period. But making a payment would update the account to make it "look" newer than it actually is.

When that happens it will have a negative impact. How long it takes to recover depends on the rest of your credit file.

If you have a pretty thick file, it may take about a year to stop hurting. If you have a thin file it could take a couple years, more or less. (if you defaulted on the debt 6 years +/- ago, it may hurt until the reporting period is up and it ages off of your reports)

Before paying, you should check the collecting SOL in your state. If you are past the SOL then you have no legal obligation to pay.

Making a payment "may" reset the collecting SOL, which could allow them to sue if they choose to.  

But IF the collecting SOL can be reset would depend on your states law.

"Some" states allow the collecting SOL to be reset while other states "do not" allow a payment to reset the collecting SOL.

If you are still within the collecting SOL and/or you want to pay, you should send a validation letter, in writing, before talking to them about any payment.

Requesting validation would prove to you that the amount they are requesting is the true amount and not an illegally inflated amount, plus it would prove that they have a legal right to collect that particular debt. (collectors have been known to try to collect debts they do not have a legal right to collect)

When they have properly validated, you could send an agreement, in writing, to pay if they delete what they have placed on your credit reports, that they consider the account as paid in full (even if they agree to accept only a portion of the amount), that they will not continue collections on any remaining portion and that they will not sell the account.

Every communication should be done by mail. Every letter you send should be sent certified mail return receipt. Never sign your letters, only type your name or print your initials.

You should also read the FTCs FDCPA and FCRA to learn your rights concerning violations in the collection and credit reporting process.

Some states have their own versions of an FDCPA in which some are actually stricter on how the collectors behave.

Some states also have their own version of the FCRA.

Never overlook your own states laws !!

Answer 3

it shouldn't if u paid the old one off.