clanderson1973 asked:
I am trying to improve my credit. Most of the debt that I have occurred betwwen 2002-2004. Most of it has been written off. I get settlement letters sometimes. I do not plan on making any big purchases within the next two years. Should I pay off the debt and if I do will it raise my score? Or should I let the debt fall off by 2010?
I am trying to improve my credit. Most of the debt that I have occurred betwwen 2002-2004. Most of it has been written off. I get settlement letters sometimes. I do not plan on making any big purchases within the next two years. Should I pay off the debt and if I do will it raise my score? Or should I let the debt fall off by 2010?
#1 by Bob D - January 13th, 2010 at 20:03
Let the debt fall off. It doesnt make sense but the credit system will hurt you more if you go back to pay it off then if you just let it fall off…
#2 by FRANK R - January 14th, 2010 at 04:31
It is important to have all debts resolved. You need a written statement that debt is wrtiien off. Otherwise, the account may still be open. I am a mortgage broker. If You applied for a loan, and there were open, unrelsolved debts, it could hurt you. There are some loan types that would require proof that debt is either forgiven (write-off) or paid. That is especially true for FHA and VA loans. You will also need to tell why you ran into the problems, and why you chose not to pay, even when yhou could. Lenders do not look kindly on debtor that walk away from debts.
If the debt is open, or is with a collection agency, it will probably NOT “fall off” you credit report. It will still be there. Whoever told you the debt would not appear is incorrect.