If I am paying old bills and paying charge-offs, how long will that take to have a positive impact. If the accounts are already charged-off, how can I show that I paid them, so that is may impact my credit score.
35% of your credit score is your payment history.?
Hold on if your paying old collections and charge offs without getting a pay for delete agreement which simply says that in return for your payment they agree to remove the accounts from your credit report you are throwing your money away.
All that will happen is the accounts will show as paid with a $0 balance and your score will actually go down because the accounts will become new instead of old.
Paying old accounts with out this agreement does nothing for your score except hurt it.
35% of your credit score is your payment history.?
12-18 months as the major part of credit is the last 12-18 months of regular payments on time, anything u pay off will impact but not to a great degree on old accounts, it will take time to age and show that u r keeping current good acounts, there is no easy quick fix.
35% of your credit score is your payment history.?
dont get credit
35% of your credit score is your payment history.?
Keep in mind that bad credit disappears after 7 years, so if you wish to pay old debt you can usually cut a sweet deal with the creditor. Be sure to get it in writing before you pay but most creditors will show Paid in Full for less than 20% of what you owe, if you just ask.
Why? Because after 7 years they can閳ユ獩 report anymore (which is their only leverage) and after 7 years they KNOW they won閳ユ獩 get a dime. 20% of something is better than 100% of nothing.
Don閳ユ獩 expect paying old charge offs to have a large impact though閳?
As pointed out above, most of your score goes to current credit usage. You need to have at least one installment loan,(ie car or mortgage) and should have at least 2 revolving loans (credit cards) current but try and keep the balances below 10% of available credit. Don閳ユ獩 keep a zero balance (because there is no payment history) but a very low balance. If your balances get too high your score will plummet even if you pay on time.
Avoid switching cards or banks, as the longer your credit history the better score you receive for that account.
Also dispute anything on your report your not sure about, or may be a duplicate. A duplicate bad account showing twice will KILL your score more than twice as bad as the model has no idea it閳ユ獨 the same account showing twice by error. It assumes your just a deadbeat and deducts accordingly.
35% of your credit score is your payment history.?
It is true that paying off old delinquencies won%26#039;t improve your score. However, creditors look at more than just your score. Having those old items marked paid certainly looks better than unpaid.
In fact, if you are going to apply for a mortgage, they will insist you pay off all those old delinquencies before they will approve you.
35% of your credit score is your payment history.?
It doesn%26#039;t take long for short term changes like account balances, payments, and available credit to show up on your credit report and effect your score -- likely these are the things to have impact over the short term, and you have a better change of fixing your score if you try to address one of those issues, which you can do easily in a matter of weeks.
However, old debts or charge-offs get written off and removed from your account after 7 years, which begins when the creditor first reports your account -- however some shady companies use whatever information or payments you send them to change the date of your account on your credit reports so that it prolongs the time it takes to get them written off -- this way they can have leverage over you which improves their chances of getting their money. Don%26#039;t fret, you can easily write to any of the credit reporting agencies if this happens and have them remove inaccurate entries, but of course you have to continue to track your credit score and credit reports until they are completely cleaned up. It%26#039;s funny but most people think that paying off charged-off accounts is going to help them, and really all it does is show lenders that you are responsible to pay even your late accounts.. however in the world of money timeliness is more important. Even if you pay your old collections such information is not removed until the 7-year time period ends and the fact that you paid late still negatively impacts your overall score no matter if you pay it off or not. So in some cases it may be better to just wait and do other things to boost your score while the other items expire.
Here are my 10 steps you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year:
1. Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring listed below. It really helped my get my score up.)
2. Never Miss a Payment, Starting Today
3. Never use more than 20% of your Available Credit
4. Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
5. Extend Your Credit Limit on Cards You Already Have before You Get New Ones
6. Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
7. Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
8. If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
9. Take out a Small Personal Loan and Repay it Over a Year
10. Ask Someone With Good Credit if They will Account Shadow you
When you%26#039;re trying to build a solid credit score it%26#039;s important to get a comprehensive view of what is actually effecting it...
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% -%26gt; History of Payments
* 30% -%26gt; Debt to Credit Ratio (available credit)
* 15% -%26gt; Credit History (length of open accounts)
* 10% -%26gt; New Credit (are you expanding your credit)
* 10% -%26gt; Credit Types in Use (varied credit types from loans to credit cards)
If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.
You can read more about these tips on my blog: How Can I Increase My Credit Score
* http://millionster.com/articles/debt/inc...
Hope this helps!
No comments:
Post a Comment