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babygirl87

Yet Another Question Sorry I'm New to this.

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So once I pay off a debt what happens to it. Does it come off my credit report or do it still stay on for seven years just with a zero balance.

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So once I pay off a debt what happens to it. Does it come off my credit report or do it still stay on for seven years just with a zero balance.

It depends on what you negotiate.

There are many answers to your question actually.

You could Pay for Delete for example - which would get it removed from your Credit Report entirely.

You could just send payment without negotiating the terms, and other than a warm fuzzy feeling from it being paid and your bank account being lighter, it wouldn't do a thing to help your overall situation.

You also need to get everything in writing. That is key.

Edited by RockDaddy

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Babygirl87,

Btw, paying a JDB for a debt doesn't neccesarily mean it won't come back.

It's not uncommon for someone to pay and then a year or two later find another CA coming after them claiming to own the same debt. Especially if you've paid less than what was originally claimed you owed.

That's because when you pay a CA or JDB, you don't know if they actually have the legal standing to collect it. They tell you they do, but you don't know if they do. That's why people on this board advocate *never* paying a JDB, but instead fighting it in court.

Not everyone does that though.

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JDB is junk debt buyer. In short they buy defaulted debt, usually pennies on the dollar. They then try to collect the full balance with interest.

To answer your question. The FCRA requires that information on your report be correct. So short of an agreement that spells out how, if any, the debt will be reported, it just only has to be correct.

Negative items (paying a charged off account or one with a JDB would be considered a negative item) stay on your report for about seven years. They they fall off automatically.

Good info can stay on forever. I have positive accounts that have been closed in the 90's that are still on my report. I'm sure they do no good, but they are on there.

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