What Will Happen To My Credit Report?
Nothing. The old debt will still be on your credit report for seven years; longer if you're in bankruptcy. It doesn't matter if you ignore the debt, pay it in full or partially pay it. Therefore, the only reason for you to pay it is that you want to fulfill your obligations and have something positive on your credit report, not because you think it will remove the debt from your report. Making a payment, whether in full or in part will NOT restart the clock on the statute according to Rod Griffin, Experian's Director of Public Education. He said the collection agency would have to change the original delinquency date, which they can't do under Federal law.
You Can Get Sued For Delinquent Debt
Depending on how long the Statute of Limitations runs in your state, which is between three and ten years in most states, the creditor can sue you until the statute has run out. If they sue you beyond the statute, you need to go to court and show that the debt is time-barred.
What If The Debt Isn't Mine?
Anytime anything is erroneous on your credit report, you need to have it removed by telling the credit bureau in writing. Also, if you wish to negotiate your payment schedule or a lower rate, call the credit card company. You may wish to have a third party help you dispute errors or negotiate; there are credit counseling agencies that are willing to help, such as The National Foundation for Credit Counseling, which could offer free advise on your credit issues.
Are you thinking of paying off some old debt?