Quote:
Originally posted by Exquisite5
You are an upstanding woman and I understand your desire to settle your debt; however there is one problem IF you do ANYTHING with this charge it will REAPPEAR on your credit report. Then it will not be a behind the scenes problem with Visa, but on the report problem for all to see.
What many people don't understand is that items are nto removed from your credit report 7 yrs from the last charge but rather 7 years from the last activity on the account. The last activity is often someone trying to do what is right and pay off the debt. However, this effort often ends up restarting the 7 year period, as it would in your situaiton.
Hypo:
Flyy Freshman gets credit card in 2000.
Flyy Freshman charges $5000 on credit card on July 5, 2000.
Flyy Freshman NEVER pays any money on her card-- not once.
July 5, 2006 collections agencies start calling Flyy Freshman offering for her to pay $500 and settle her debt.
Flyy Freshman does nothing.
July 5, 2007 the credit issue is removed from her credit report.
VICE
Flyy Freshman gets credit card in 2000.
Flyy Freshman charges $5000 on credit card on July 5, 2000.
Flyy Freshman NEVER pays any money on her card-- not once.
July 5, 2006 collections agencies start calling Flyy Freshman offering for her to pay $500 and settle her debt.
Flyy Freshman takes offer and pays $500 charge off on July 30, 2006.
ISSUE NOT REMOVED FROM FLYY'S CREDIT REPORT UNTIL JULY 30, 2013.
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I am in the process of getting my credit score up and I was faced with these two hypotheticals. To be honest with you, I am morally conflicted. I have 4 more years before my credit card debt is totally off the account so that by 2010, I am in the clear. However, I believe that if you owe debt, you must pay it back! If I do that, then I am cursed for the next 7 years
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