By doing these 2 things will my credit score go up even a bit?
I have some debt that I have been holding onto for a few years now that has gone into collections. Things such as store cards, one major credit card and a cell phone. I just paid off my over 0 old cell bill which the cell has been off for quite some time now, almost a year. I paid it off in two payments of 0 and change. I now just started the process of paying off a store card–the first payment was scheduled to come out a few days ago. Sorry to add somewhat unneccesary info. anyway, this next card should be paid off in September and hopefully I will just continue doing this till all of this past debt is gone……With me paying off the cell and this other store card how muchw ill that improve my credit, if any at all??
Thank you for the honesty. I don’t know why I did it, stupidity and being nieve, I suppose.
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5 comments
Love big words on July 9, 2010 at 6:18 pm
For good health, wash your hands
For good credit, pay your bills on time.
Caveat Emptor on July 9, 2010 at 6:18 pm
It will improve it by having the debts show as "paid" and not still outstanding. But the damage from defaulting on them in the first place remains on your credit history for 7.5 years from date of default. It will take a while (and responsible use of "new" credit) to really repair your credit scores.
latashia aungst on July 9, 2010 at 6:18 pm
I found the pros & cons explained really clearly on the tips on links third and fifth over at http://www.yourcreditscores.tk
Good luck
JIM on July 9, 2010 at 6:18 pm
Total puzzle why people "hold onto" debt. Once your account becomes overdue and you haven’t attempted to negotiate with the creditor, the debt goes to collections and from that moment, your credit report is tarnished. Holding on to debt makes things worse and this delay will be reflected on your report for several years to come. Having the accounts finally recorded as paid is obviously better than still outstanding, but the delay "a few years now" has done severe damage
Larry on July 9, 2010 at 6:18 pm
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - credit-report-score.10001mb.com