- Centurion Member
- Posts: 1144
- Joined: Sun Jan 26, 2014 3:55 am
- Location: US
Could you easily pay it off if you wanted to? Is there any credit you would like to obtain before it is scheduled to fall off?
Before we met my wife got into some credit troubles when she was very young. We just waited out a lot of her baddies, BUT I was able to get any credit products we needed and we were also in college so we didn't have a lot of funds to pay off old debt. It was worth it to us to just wait it out. It took a long time, but everything finally fell off early this year.
My biggest worry if you paid it off would be whomever holds the debt "re-aging" it. It would show as paid off, which is better than unpaid, but may potentially continue to report 7 years from when you paid it off and by trying to do the right thing you end up giving yourself a brand new baddie to start waiting on again. Not saying this would or should happen, just that it would be my concern if I were in your shoes. If it has been charged off to some shady collection agency, they are notorious for that sort of thing. Maybe others could chime in about this likelihood.
I think your best bet is just waiting it out. From my wife's experience, the CRA's dates of when derogs fall off is accurate, so worst-case scenario if you do nothing is wait 7 months. If you pay it, there is a risk of a much worse worst-case scenario. 7 months is a pretty short time in the credit world. May seem screwed up, but those are the incentives the system has set into place for us.
EX - 804 (10/16) | TU - 803 (10/16)
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now