Posted on: 28th Aug, 2010 11:38 pm
I have met with several credit counselors as well as read the books and some have indicated that only past due accounts not more than 3 years old should be paid off and anything older than that can jepordize your credit score because it reopens the account.
Which one is true pay only past 3 years of collection accounts or pay all. Which will help increase my credit score?
Which one is true pay only past 3 years of collection accounts or pay all. Which will help increase my credit score?
Hi YMELERO,
It will depend upon the statue of limitations. If the statute of limitations regarding a charged off account is over, then the collection agency will not be able to take any legal actions against you. In that case, it's better to not pay the account. If you start paying it, then it will reopen the statute of limitations and the lender will be able to take legal actions against you.
Thanks
It will depend upon the statue of limitations. If the statute of limitations regarding a charged off account is over, then the collection agency will not be able to take any legal actions against you. In that case, it's better to not pay the account. If you start paying it, then it will reopen the statute of limitations and the lender will be able to take legal actions against you.
Thanks