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Level 3

Debt

Is it better to have an account go to a creditor so it doesn't show late payments anymore or to just pay the payment? 

2 Replies
Level 19

Debt

usually the creditor has the right to pursue payment.  if the creditor "forgives" the debt (you would get a 1099-C) you could end up with taxable income. however, any payment would be more than the income taxes on the amount forgiven.     

 

not paying or late paying the debt will be on your credit report for 7 to 10 years,   

 

for your FICO credit score payment history makes up 35%

 

 

 

 

Level 20

Debt

I have to wonder whether the original poster meant "go to a collection agency" instead of a creditor.

 

In that instance, it would be better to continue paying the creditor.