Ok so i was one of the people who who got scammed by a person on Craigslist. I basiccly got F*cked out of 8,000 dollars. Now i have collectors calling me. They said they could work out a payment plan for me... Will this ruin my credit score if i pay it off making small payments? Is my credit unsavable? I'm only 20 and my credit score is about 700ish, so i don't want it to hurt my credit. But i only make about $300 a week, not to mention rent and college tuition, there is no way i can pay that off in a short period of time... I guess my main quesion is if i pay if off slowly over a period of like 2-3 years... does it hurt my credit, and if so by how much should i expect it to drop.?
Answer:
Ask the agency how they handle payment plans. Specifically, ask that if you set up a payment plan and continually make payments in a timely manner, will they not credit report your debt. Some will comply with your request, some won't. It also depends on your payment plan amount. If it's large enough, some of them might comply with your request.
Most likely the debt will show up on your credit report as a collection account, unfortunately. Is there a way you can borrow the money from your folks and then pay them back to help save your credit?
One key piece of advice is to be very nice to the agency. They will be more helpful to your plight if you're polite and very sincere.
Your credit is in trouble any way you look at it. THis way you are on record and clearing the problem. Ignoring it just leaves it on the record.
If you make all the payments on time, and it is a collection agency that is collecting from you, you shouldn't drop more than 50 points. And that is aggressive. If it isn't a collection agency, but actually just the person or company you owe, as long as you make your payments the worst that could happen would be maybe 10 points. If it is new credit, and not a collection agency, you might actually get a higher score.
IT SHOULD NOT HURT IF YOU MAKE THE PAYMENTS. IF YOU WERE SCREWED ISN'T THEIR SOMETHING ELSE YOU CAN DO LIKE SUE THEM FOR SCREWING YOU OVER. MAKE SURE IT'S A LEGIT CREDITOR. CALL HE SPONSORS OF CRAIG'S LIST GIVE THEM THE DETAILS THEY MAY BE ABLE TO HELP YOU.
No paying it will distroy your credit.
Working out somehting so that you can make payments on it is showing that you are trying to correct the problem.
Work with them.
Credit is saveable. Just work with them, explain to them your sistuation, and if you didn't do it over a 2-3 yr period then what would you do? If you dont pay it it will mess up your credit. Good luck
I would try going to your local bank and explaining the situation if they will give you the loan to pay off talk to the collection agency and see if you pay it off in one payment if they will take it off your report. Then when you make payments to the bank it will help your revolving credit. If the bank will not go with you the payments will hurt a little but you can bring it back up just make sure the payment you set up is doable for you...and NEVER pay more or less than the agreed amount that sends flags up, even if you can afford more one month. Hope that helps and good job on being young and worrying about your credit!!
Realty is It won't, if you make a agreement and stick to it!! that being said
Put into the agreement if you prove fraud the agreement is void and no reporting to the the biggest scams of all!! the credit bureau's
I can answer your question by explaining what I have been through with credit in the states, where a persons worth is measures by his credit, it seems.
When I arrived in the states 5 years ago from the UK, My credit score didn't come with me so I had to start at 400.
On top of which I needed to get a credit card, or store card to start building credit, but couldn't get them approved because of my credit score.catch 22.
On top of all this, I am paying my wife's debt from her college days.
Only 5 years later my credit is almost 800. I did it by getting a couple of 'easy to get' credit cards like Capital One who are terrible companies and have an annual fee, but it was enough to get up to the next level where I could then get store cards. Having a small balance each month while paying at least the minimum payment each month is the ideal..credit score wise. Not paying them off, or having high balances, but having a slight balance and NEVER miss a payment. Keep asking for credit limit increases and after you get more established with higher limits on some credit cards, close some store cards and other cards so you don't have too much open, that can also bring down your score.
You want to minimize the amount of inquiries creditors check your credit because each one stays on your credit for two years and brings down your score every time (despite what other people may tell you).
Pay at least the minimum each month and your score WILL NOT do down 1 point. Just go to annualcreditreport.com to get your free credit report and make sure it's accurate and it will tell you more areas where you can improve your credit.
Good luck.
if you make payments then no it wont ruin your credit much or at all.
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