Is it bad to have an unpaid debt on your credit file?

I have a $350 Cingular phone bill from 2004 which is with a collection agency called AFNI right now. They offered me 50% off as settlement a while back but I just held back. Now though I am trying to fix my credit and this is the LAST debt on my credit file which remains delinquent and unpaid.

Anyway...from what I have been reading here on yahoo answers if your delinquent debt is more than 2 years old, which mine is obviously, then it doesn%26#039;t hurt your FICO score that much.

OK..now what about specific customized FICO scores--like the ones that they use just for store cards or credit cards? Do those specialized FICO scores smack you really hard for 120+ day delinquent collections account? More so than the %26quot;generic%26quot; FICO score? Also do some stores like target, bestbuy, sears just say NO to you if you have a delinquent collections account, no matter how high your FICO?

Is it bad to have an unpaid debt on your credit file?fast loan

Here%26#039;s a tip for you. AFNI is a very sleazy low rate collection agency. Try sending them a demand to validate letter, and that will usually make them go away.

Is it bad to have an unpaid debt on your credit file? loan

Unpaid debts do affect your FICO score, but you are right in stating that they don%26#039;t affect them as heavily the older they get. If you were to pay it probably wouldn%26#039;t do too much for your score, if that is your primary concern. The fact that it went to collections is already damaging the score.

That being said, I am a believer in paying for the debts that you owe. You may be able to bargain with them to get the amount even lower. I, too, would do the debt validation first to make sure they have properly purchased the debt. They may tell you things like you will be possibly sued, etc, but they won%26#039;t sue over that amount. And there can%26#039;t be any garnishment of your wages until a judgment is given, which more than likely will never happen.

My recommendation is to continue to offer them 25% of the balance until they take it. If they say they can%26#039;t accept just get off the phone and make the same offer in another week. Eventually they will take it.|||They are probably calling because the state statue of limitations is about to run out to collect on the debt. Do not pay it. The reason, if you make payment on your credit report the debt will be on there seven years from the date of payment. Right now you are three or four years into the seven years already. Why would you want to start the seven year reporting history on the debt all over again? The seven year period of reporting ends at the last activity on the account. You will be hurting yourself by paying. Also, as for some stores will not give you credit because of collections BS. I have two collections on my account and have never been turned down on any line of credit. Including Best Buy and a 150,000 dollar business loan with no collateral. Yes, my credit score is high over 780. Tell them to get packing. If you feel guilty. Donate the money to charity you would have paid them. They just want to reset the statue of limitaions.|||Yes, but you can get it removed read this article http://www.adviceontime.com/Credit/Credi...|||In your sitation,I would like to suggest you have a look here.http://debt-consolidation.featured-resou...

Things to annoy "The Man"?

I get offers for credit cards all the time. My brother suggested that instead of ripping up the letter and throwing it away, I should rip up the application, put the remains in the envelope, and mail it to the credit card company. After all, the envelope that comes with the application is prepaid.

What are some things you do to get back at %26quot;The Man%26quot;?

Things to annoy %26quot;The Man%26quot;?va loan

I shred the contents and send the envelope back to them...empty of course! If I want their credit card, I certainly know how to contact them. They don%26#039;t need to keep hounding me about it.

I save all of them for about a month, then take care of business!

Things to annoy %26quot;The Man%26quot;?

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I just ignore things that annoy me. Life is so much smoother that way :-)

What's the deal with personal loans from companies like Discover?

Over the past few years, I%26#039;ve received several offers from credit card companies, or companies like GE that are for personal consolidation loans.

I have no experience with something like this, but it seems it would be easier than paying separate credit cards, etc.

Can anyone tell me if these things have any hidden costs and if they are worth considering?

What%26#039;s the deal with personal loans from companies like Discover?fha loan

well i would def read the fine print because lot of times they lock you into payment plans which are not pretty or other games. but it could quite well be a legit thing.

if you want to consolidate credit card debit use a non-profit service but make sure they explain the whole process to you and ask as many questions about it as needed.

What%26#039;s the deal with personal loans from companies like Discover?

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gatorade

pink lemonade

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mangos

Are they for real?

I%26#039;m sure you all have seen the offers, %26quot;receive a $200 gift certificate!%26quot; and they have you fill out offers and/or surveys. Are they real? I mean, has anyone actually finished filling out an offer, with credit card no. and everything, and do you actually receive your gift certificate or whatever? Just wondering...they%26#039;re everywhere!

Are they for real?cheap loans

they%26#039;re real bullshit. actually my aunt filled out like 40 surveys and while i was visiting her, she received a check in the mail for $13 no kidding. but they%26#039;re so popular, like winning a lottery is only a click away and junk, no it is wise just to stay away from those scams, usually the site will do something to your computer too.not worth it in my opinion.

Are they for real? loan

As for the popups on the computer? They are real but you need to get like 5 people to buy stuff. So it pretty much adds up to 200, you get people to spend.

Bad credit choices in past.?

I was very stupid with credit while i was younger. I never paid on five different credit cards. There is now five years since the last activity is being reported. I want to purchase a house within the next year and cant wait the seven years that it takes. They all say paid collection or charge-off. Any ideas on how to approach the compainies so they get some money back and upgrade my account? What percentage should I offer them as a settlement. I keep hearing they sell the accounts for pennies on the dollar. Any idea how much they really get?

One of the accounts is an open collection account that is reported every month. Should I leave it alone also?

Bad credit choices in past.?consolidation loans

Credit is nothing more than an agreement, a promise. If you failed to pay in the past, and you want to get someone to loan to you again, you have to repay what you borrowed. If you are going to instead see how little you can pay to eliminate your past debt, your new lender has got to think that you will treat him the same way.

Pay your debt...or suffer the consequences. As you said, you made some bad previous choices. Either own up to them (and pay) or work through the various options of being a renter until your bankruptcy is discharged, etc.

It%26#039;s hard to get a new lender to believe you are credit-worthy (aka, %26quot;trustworthy%26quot;) if your primary goal is to *NOT* pay your debt in full.

Bad credit choices in past.?

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You can conctact each of the companies and they will more than likely offer you a settlement amount. Once that is paid they will consider your account paid in full. Your credit report will still reflect the late payments but will show that it is paid (even if you paid the amount in full your credit report will still show your late payments). I think that trying to pay some is better then none at all. If you start now making arrangements and stay in good standing with all your current creditors for the next year then when you go to buy a house it should be o.k. You may be faced with a higher rate but you can eventually refinance once you have built your FICO score up.|||If you do try to pay any of the credit companies, your credit report will show the most recent date of activity on those accounts, which means suddenly you have taken bad credit from 5 years ago and made it today%26#039;s bad credit. You%26#039;re in a really bad situation either way. Probably you need to try and give yourself good credit by getting a secured credit card - the easiest way is through your bank. Even though the card is secured, your use of that card is reported to the credit agencies and will show up on your credit report. Definitely pay off the collection agency since it shows current...but think twice about the previous accounts - you are guaranting that you will have more bad credit for seven years from the date you finally pay all those accounts - and btw, most will not show paid in full. You do not have a good chance of buying a house right now or in a year - your only chance is if you have a really sizeable down payment (30-50% or more) and are willing to pay very high rates. A co-signer with great credit will help, but is no guarantee. A quick way to help pop your FICO is to get a person with a really great credit score to add you to their credit card accounts - their credit history gets added to yours.

Bad credit entries from 2000?

I was very stupid with credit while i was younger. I never paid on five different credit cards. There is now five years since the last activity is being reported. I want to purchase a house within the next year and cant wait the seven years that it takes. They all say paid collection or charge-off. Any ideas on how to approach the compainies so they get some money back and upgrade my account? What percentage should I offer them as a settlement. I keep hearing they sell the accounts for pennies on the dollar. Any idea how much they really get?

Bad credit entries from 2000?student loans company

It is screwed up, but paying those bad loans will make your situation worse. It will kill your FICO score, becuase it will make the deliquency current. Your FICO score may have recovered since your mistakes.

You probably want to work with a mortgage broker who can look at various lenders with various programs. You will probably have to pay a little more than someone who has perfect credit. Make sure even if your rate is not great, you do not pay any points. In a couple of years when the deliquencies have dropped off your credit report, you will want to look at refinancing.

Bad credit entries from 2000?

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I know this might sound hard to believe, but everything VA treasures wrote to you is true. I am a mortgage broker who deals with this sort of situation every day. The first thing you should do is check your FICO scores. A mortgage broker can provide you with this information. Good luck!

How can I increase my credit score?

I am twenty-two years old and my FICO score from Experian was a 738 four or five months ago. I have:

1. a close to $75,000 mortgage with an initial balance of $83,000

2. four credit cards with a total limit of close to $55,000 (only one of which has a balance [$8,000 on it but at 0% that I will pay off before any interest accrues])

3. about $21,000 in student loans that are not yet in repayment (I am finishing college soon)

4. no auto loan payments (paid cash for my wife%26#039;s car and mine)

I am trying to increase my credit score so I can get the very BEST rate on a HELOC (home equity line of credit) so I can begin my real estate career! Hopefully, I can find something lower than prime - 1.00% because I have already been offered that.

How can I increase my credit score?school loans

The number one credit killer is debt.

-Kill the 8000 and your credit will jump fifty points or more. Agree that you should still use the cards at lease once each month.

-Consolidate your student loans. Normally, student loans are multiple in nature. Even though consolidating them doesn%26#039;t change the balance, it does mean a higher credit score because you have less accounts with balances on them. They should get their own category in a credit report, but they don%26#039;t. I know, I know, who makes up all these rules.

-Time - inquiries stay on for two years so you must wait them out. If you have any newer credit cards (within two years), this also hurts your score. You need to wait them out.

How can I increase my credit score?

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Best thing to do is not spend what u dont have... if u cant pay off ur credit card bill in full for the month then don%26#039;t buy that stuff... (except for mortgage).

The only thing u should have a debt on is no interest financing and anything that increases in value like real estate.

Try to use less than 20% of ur credit (don%26#039;t max out ur cards), increase ur salary, make sure to use all of ur credit cards at least once a month (cancel the ones u dont use).

good luck!|||I wouldn NOT suggest you to take out the HELOC against your house. Especially you owe $55,000 in credit card (even with $8,000 will be pay off with 0% interest rate), that you still owe $47,000 in credit card. What is the interest rate? The minimum payment for your credit card is like $1,100 a month...and don%26#039;t forget that once you finish school, your $21,000 student will kick in in re-payment status. You need to focus on paying off the credit card debt and then your student loan first before you start your real estate career (is that what the HELOC money is for?). I know you are asking to raise your credit score, but that is a very BAD idea.