How will this effect my Credit???!!!???

Long story short, my previous leasing office is trying to get $400 from me. Unfortunately there's only 2 options for me to take, pay the $400, (which I don't have), or not pay it, which will then go to a collection agency, and finally probably show up on my credit as an unpaid debt. How will this affect my credit score? Is it more detrimental for me to pay the $400 or have this on my credit? What should I do?

Can you work out a payment plan with them, or are they insisting on full payment? Since you claim you don't have the money, that's sort of a mute point.

So if they demand everything in full, then you will have to wait for it to go to collections and try dealing with them.

That will at least buy you a couple of months to come up with the money. Then offer payment to the collection agency in exchange for them deleting any negative information from your credit report.

If they refuse, then I would just not pay anything....your credit will have a single negative item on your report and it will hurt you for about 3-4 years. Continued good credit will overcome that.

But honestly......$400 isn't that great an amount. Yeah, it is if you don't have a job. But if you could somehow find it, you will save yourself 4 years of headaches.

And don't forget to make the leasing office delete any negative information if you pay the bill.

Life does not come to an end when one delinquency goes on your credit report. It's when a bunch of them happen that you need to worry.

Pay the $. If it goes to collections you will never get this off the record. It could deprive you of credit for a very long time.

Well it will take off some points from your score. Plus, it's only $400 dollars, just pay it. Just tell the leasing office, "Look, I cant give you the 400 all at once, so can I arrange some type of payment plan?" Trust me, they want their money, so they will work with you. Good luck.

If the payment is disputed, don't pay it. Your credit record may take a minor hit in the short term, but it shouldn't matter if it's the only blemish and you can always get it taken off later (there are ombudspeople for disputed cases like this).

The only problem would be if you plan on trying to finance a major purchase (house, car, boat) within the next couple of months.

If you plan on buying anything soon or apply for credit, you need to pay it. Unpaid bill on your credit really lower your score...a lot. And it doesn't matter if the bill is for $30 or $3000. It's very bad for your credit. Even if it does go to collections, and you pay it off down the road, you'd have to convince them to take it off of your credit history. They don't have to. It can effect your credit score for up to 7 years!!! Can you work out some sort of a payment plan with your previous leasing office? Try to work something out. You're gonna have to pay it.

if u can't afford to pay that right now, then let it go to the collection agency but it will really affects in your credit score, my husband have a previous credit ,and credit card company sell it to collection agency, which he didnt pay for almost 4 years, his credit score at that time is 620+, but after that 4 years, he paid that in full then after a mo. he's credit score went to 670+, which really great.

there is still change to work with them on repayment plan.
try to avoid them to put you to collection agency.
when they do this , even after you pay them- collection account will sit on your credit for 7 years. it's not worthy to ruin your credit over $ 400

pay the total amount