NOT file BK and just settle after a year to keep good credit???

[PoGirl]

I don't think anyone, except for Fair-Isaac understand the FICO score and what exactly one lever does versus pulling a different lever.

I will tell you that collections are just about the worse thing on there.

I just had a bunch of accounts go from 90+ days past due, to IIB... and my score went up 45 points.

No one understands at all how the FICO score really works.

The score went up b/c you no longer owe the debt.

[justbroke]

The score went up b/c you no longer owe the debt.

Exactly. The score would not go up if it were a collection and I paid it off. (I know, I tested this theory about 7 years ago.)

[PoGirl]

I've never heard of a credit card company issuing a 1099. If they did this, they couldn't sell the "junk" debt and issue a 1099. Although I'm sure they'd love to be able to do that.

More than likely, they'll sell the debt to a junk collector who will pursue you for the whole thing.

I was wondering about that. I had an offer to settle today that I didn't take since I'm planing to file in December. I was wondering if I'd get the 1099 for the part I didn't pay, but that didn't reconcile with that amount then being resold.

[PoGirl]

Exactly. The score would not go up if it were a collection and I paid it off. (I know, I tested this theory about 7 years ago.)

Huh. That's interesting. I would have thought that getting the account down to zero would have the same effect.

Good to know!

[justbroke]

Huh. That's interesting. I would have thought that getting the account down to zero would have the same effect.

Good to know!

No one understands FICO. I'm sure Fair-Isaac themselves can't understand the formula. A lot of it has to do with the age of the account as well. For example, if it's a recent Collection account (less than 6 months old), and you pay it... it does nothing. (That's what I learned.) It appears that as it ages, it has less affect... just as you already pointed out.

I had a collection which killed my score when I was trying to buy a house. This is the one I referenced earlier. I didn't pay it, but I got the Bureau to get it to $0.00 owed (because that was true). That did NOT change my score. This is mainly because the collection was "hot" (new).

I then called and literally begged the person on the phone for an hour to remove it. I begged the collection person and told them that it was paid before it went to collections and that's why it was at $0.00. The person finally relented and said they'd remove it. THEY DID!!!

My score than bounced back up to around 690 and I bought my house. My score was below 620 before getting it "fixed".

The more recent a derogatory item is, the more impact it has on your score.

[Beeheery]

thanks everyone. oh....this might help. i am 25, have NO assets. NO car NO house NO savings NOTHING. i have NO assets for them to take so thay is why noone has sued me or anything. they cant take what i dont have. also, i took a 12,000.00 balance transfer from Chase in June 2007 and my total balance was 15k and it was sold off. my other 6k balance with them was just written off. i think the more time that has passed and when they check my credit to see if i have anything in my name and it shows nothing, they know they cant do a thing. thanks to everyone who answered my question. i am going to hold out another 3 months to file because i need to use my carecredit (medical cc) to pay for my teeth and some dr appts first. thanks again!

[TEW]

thanks everyone. oh....this might help. i am 25, have NO assets. NO car NO house NO savings NOTHING. i have NO assets for them to take so thay is why noone has sued me or anything. they cant take what i dont have. also, i took a 12,000.00 balance transfer from Chase in June 2007 and my total balance was 15k and it was sold off. my other 6k balance with them was just written off. i think the more time that has passed and when they check my credit to see if i have anything in my name and it shows nothing, they know they cant do a thing. thanks to everyone who answered my question. i am going to hold out another 3 months to file because i need to use my carecredit (medical cc) to pay for my teeth and some dr appts first. thanks again!

You know what my wife tried that. Guess what as soon as I put her on my checking and savings account they went after it.
So if you as long as you at 20 something are never going to own anything your in luck.

[Overmylimit]

Pogirl, I think you are right I have almost a half a Million (man it really sounds like a lot when I put it like that!) in unsecured debt so I know they are all gunning for me 1st before a lot of people....