How to help your personal credit and credit score...?
If my husband and I paid off our bad credit on our reports would this reflect on our credit score and report? Would this help to raise our score and would it be easier to get a loan?
Public Comments
- yes paying off negative items will help, however it will take about 3 months before the credit reporting agencies will update their reports. It will help raise your score as well in addition to help you be approved close any accounts you no longer use, and pull all three credit reports and dispute any errors.
- It depends on how old these bad credit's are. If their very old, then paying them now will cause these debtors to "notice" you and begin reporting you again. IT doesn't matter if paid or unpaid...a bad debt still is a bad debt. Most bad debts will get old and these creditors will stop reporting and it will be in your past, however, these companies will notice you again and start reporting again if you bring yourself to their attention! Remember: A bad debt that is getting old effects your credit much less than a "paid" charge off. A charge off, even paid effects your credit score negatively! So it's best to let sleeping dog's lie! However, paying your debts on time is very important is maintaining and establishing your credit! Once you've allowed your bills to become charge offs or unpaid for lengths of time to where they close your accounts...then its' already effected you and there's not alot you can do! The only thing that would help if these are very recent "bad debts" then it would show you are trying to get back on track...but if it's been more than 2 years then it will do more harm than good to pay these old debts! If you do plan on paying these old bad debts...then there's a few things you MUST do to make it a positive thing for you! 1. Call the debtor and tell them you will pay on a few conditions. That they delete everything they've placed on your credit reports and you want it in writing before you pay them a dime! Also you want to settle with a good amount. 2.Don't pay what you owe! If it's a collection agency, then settle for about half to a quarter of what you owe. They buy these debts for pennies on the dollar and still make money if you paid 10 percent of what you owe! 3. Don't pay a dime until they send you an agreement, either by fax or mail. Make sure everything you stipulated to make this payment is in the agreement...deletion from your credit report and the amount you settled for. Also make sure they put this clears all your debt with them in that agreement! 4. Don't pay them a dime until you get this agreement! Also don't pay them with a bank account/checking account. Always pay with a money order! Some of these companies are very crooked...they will take out more than you agree to. They will also keep reporting you to the credit agency even after you pay...so make sure you get everything in writing to prove you had an agreement!
- Paying off your bad credit does help, but it won't affect your credit score... I've got 10 steps you can use to build your credit score. I raised mine to well over 700 points fro 500 using these steps: # Know and Track Your Credit Score # Never Miss a Payment, Starting Today # Never use more than 20% of your Available Credit # Keep Credit Cards that Have No Annual Fees Open For as Long as Possible # Extend Your Credit Limit on Cards You Already Have before You Get New Ones # Get Credit Cards that Have CashBack Rewards to Contribute to your Balance # Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit- # If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan # Take out a Small Personal Loan and Repay it Over a Year # Ask Someone With Good Credit if They will Account Shadow you Read the full article here, it gives you an overview of credit scores, and the 10 steps in detail on page 2: http://millionster.com/articles/debt/increase-fico-credit-score/
- Credit score doesn't rase automatically as soon as you've payed your debt. It is about using the cards so that you build positive reports. However, paying your debts on time is very important is maintaining and establishing your credit!
