Credit Repair?
I am getting a student loan to pay off everything on my credit report. Will these things be removed at that time? Will my score go up significantly?
Public Comments
- When you contact these companies to pay them off try to do a few things. Some companies will remove the item from your report once it is paid in full, some will not. If they will not then it is worth negotiating a settlement price and report the item as settled in full. The difference in your credit score is minimal between these two. One other thing to think about it the age of the negative item. Are these collections really old? If they are over two years old you might be able to dispute them with the bureaus claiming they are not your collections or that they were paid before they went into collections. The only the collector can do is verify your information with the bureaus and update the most recent date of activity on the account. The item still keeps its age (needs to be 7 yrs old to fall off on its own which doesnt always happen efficiently either) and you can proceed to contact the company to settle the debt. Paying down any credit cards will help you raise your scores too. The lower the deb ratio the better, just as long as your account has any activity every six months, which will keep it from reaching an inactivity level status.
- If the items on your credit report are just behind in payments, then paying them off will improve your score. however they will remain on your report and still show history of late payments. The only way to remove the items is to close the accounts but this would lower your score. If any of the items listed are in collections, then even if you pay it off, your score won't go up and will stay on the report marked as paid with 0 balance for seven years (clock started at date of last activity). Here is a link for more info http://www.ftc.gov/gettingcredit/ What you need to know about your credit.
- now you need to do good credit items. the number of good items. open accounts @ credit unions. deposit c/d's $500.00 is the smallest amounts 3-6 months get a secure loan on it. deposit back in saving account. they also have overdraft $200.00 charge never more than %50. pay off every month. good items go on point system balance out bad
- Items on your credit report will be on there for 7 years (sometimes longer), but they will show being paid (which is always a good thing). The one thing you will need to do - is to check with all 3 credit bureaus, to make sure they have been reported as paid. Always pay by check, and make a copy of the check as a reference. That way you have proof that they were paid - or a money order, but make a copy....You may have to fax them at a later date to the credit reporting agencies. Have see it happen many many times, where ppl pay off stuff, and its never reported as being paid - Creditors are fast to put a mark on a credit report, but slow to take it off.... And yes, your scores will go up.... You can find more info here: http://debt.knowledged.info/credit_card.html Hope that helps.
